Qty AFC ATC MC 0 - - - 1 80.00 100.00 20 2 40.00 58.00 17 3 26.66 44.00 15 4 20.00 36.25 13 5 16.00 31.40 12 6 13.33 28.33 13 7 11.42 26.29 14 8 10.00 26.13 25 9 8.88 26.56 30 10 8.00 27.56 34 11 7.27 28.30 40 12 6.66 30.00 47 13 6.15 31.92 55 If price is Rs. 26, perfectly competitive firm will:

Produce 8 units at a total economic loss of Rs. 1.04.

Produce 8 units at a total economic loss of Rs. 9.

Produce 9 units at a total economic loss of Rs. 5.

MCQ Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 11

Answer the following questions

Units	$0$	$1$	$2$	$3$	$4$	$5$	$6$
Total Revenue	$100$	$180$	$250$	$310$	$360$	$400$	$430$

Find the marginal revenue at

$5^{th}$ unit is

0%
$60$
0%
$55$
0%
$45$
0%
$40$

Explanation

Marginal Revenue

$\Rightarrow MR_{n} = TR_{n} - TR_{n - 1}$

$\Rightarrow MR_{5} = TR_{5} - TR_{4}$ [Marginal revenue for

$5^{th}$ Unit]

$\Rightarrow MR_{5} = 400 - 360$

$= 40$

$\therefore$ Marginal revenue at

$5^{th}$ Unit is

$40$ .

Qty	AFC	ATC	MC
0	-	-	-
1	80.00	100.00	20
2	40.00	58.00	17
3	26.66	44.00	15
4	20.00	36.25	13
5	16.00	31.40	12
6	13.33	28.33	13
7	11.42	26.29	14
8	10.00	26.13	25
9	8.88	26.56	30
10	8.00	27.56	34
11	7.27	28.30	40
12	6.66	30.00	47
13	6.15	31.92	55

If price is Rs. 26, perfectly competitive firm will:

0%
Shut down in the short run.
0%
Produce 8 units at a total economic loss of Rs. 9.
0%
Produce 9 units at a total economic loss of Rs. 5.
0%
Produce 8 units at a total economic loss of Rs. 1.04.

Explanation

At the level of production of 8 units, MC is 25 whereas MR is 26, and a perfectly competitive firm can produce at a level of output where MC = MR

$. MC$ can be less than MR, but not more than MR.

$TR = 8 \times 26 = 208$

$TC = 8 \times 26.13 = 209.04$
Profit/Loss = TR - TC

$= 208 - 209.04$
Loss

$= Rs. 1.04$

When a firm produces

$7$ units of production and the TR is

$Rs. 42$ after raising the production to

$8$ units TR reached

$Rs. 46$ . Marginal revenue will be

0%
$Rs. 6$
0%
$Rs. 4$
0%
$Rs. 5$
0%
$Rs. 8$

Explanation

$7$ Units

$\rightarrow$ T.R

$= \text{Rs.}\ 42$

$8$ Units

$\rightarrow$ T.R.

$= \text{Rs.}\ 46$

Marginal Revenue

$= \dfrac{\text{Change in total revenue}}{\text{Change in Quantity}}$

Marginal Revenue

$= \dfrac{46 - 42}{8 - 7}$

$= \dfrac{4}{1} \Rightarrow 4$

If a seller obtains

$Rs. 6,000$ after selling

$50$ units and

$Rs. 6,204$ after selling

$53$ units, then marginal revenue will be

0%
$Rs. 204$
0%
$68$
0%
$120$
0%
$118$

Explanation

$50$ Units

$\rightarrow$ Total Revenue

$= \text{Rs.}\ 6,000$

$53$ Units

$\rightarrow$ Total Revenue

$= \text{Rs.}\ 6,204$

Marginal Revenue

$= \dfrac{\text{Change in total revenue}}{\text{Change in quantity}}$

$\Rightarrow$ Marginal Revenue

$= \dfrac{6000 - 6204}{53 - 50}$

$= \dfrac{204}{3} \Rightarrow 68$

_______ is the best example of oligopoly

0%
SAARC
0%
WTO
0%
GATT
0%
OPEC

CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 11 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 11 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

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