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Question-1
In the long run equilibrium in perfect competition.
(A)
Price = average cost = total cost
(B)
Price = average cost = marginal cost
(C)
Price = marginal revenue = total cost
(D)
Total revenue = total variable cost
Question-2
A change in input prices also affects a firms _________ curve.
(A)
Demand
(B)
Supply
(C)
Contraction demand
(D)
Income demand
Question-3
In perfect competition ;
(A)
A few firms dominate the industry
(B)
Firms are price makers
(C)
There are many buyers but few sellers
(D)
There are many buyers and sellers
Question-4
In perfect competition :
(A)
Short run abnormal profits are competed away by firms leaving the industry
(B)
Short run abnormal profits are competed away by firms entering the industry
(C)
Short run abnormal profits are competed away by the government
(D)
Short run abnormal profits are competed away by greater advertising
Question-5
The profit level that is just enough to cover the explicit costs and opportunity costs of the firm is called the
(A)
Break Even point
(B)
Normal Profit
(C)
Demand
(D)
Supply
Question-6
If the price of an input _________ the cost of production rises.
(A)
Decrease
(B)
Increase
(C)
Constant
(D)
Leftward
Question-7
In the __________ a firm does not produce if it earns anything less than the normal profit.
(A)
Short run
(B)
Long run
(C)
Constant
(D)
Demand curve
Question-8
Firms in perfect competition face a
(A)
Perfectly elastic demand curve
(B)
Perfectly inelastic demand curve
(C)
Perfectly elastic supply curve
(D)
Perfectly inelastic supply curve
Question-9
A profit maximising firm in perfect competition produces where ;
(A)
Total revenue is maximised
(B)
Marginal revenue equals marginal cost
(C)
Marginal revenue equals zero
(D)
Marginal revenue equals average cost
Question-10
In perfect competition :
(A)
Products are heavily differentiated
(B)
The products firms offer are very similar
(C)
A few firms dominate the market
(D)
Consumers have limited information
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Plus 2 Commerce
Kerala (English Medium)
Practice in Related Chapters
INTRODUCTION TO MICROECONOMICS - THEORY
CONSUMER BEHAVIOUR AND DEMAND
THEORY OF CONSUMER BEHAVIOUR
INTRODUCTION TO MACRO ECONOMICS
Money and Banking
The Theory of Consumer Behaviour (Micro)
Market Equilibrium Under Perfect Competition (Micro)
Elasticity of Demand (Micro)
Theory of Demand (Micro)
Introduction to Micro Economics
Production Function-Returns to a Factor(Micro)
Supply and Elasticity of Supply (Micro)
Cost, Revenue and Producer's Equilibrium(Micro)
Forms of Market (Micro)
The Theory of the firm Under Perfect Competition
Aggreggate Demand and Aggregate Supply
National Income Accounting and Circular flow of Income (Macro)
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