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 the market price is Rs. 31, the firm will produce:

9 units at an economic profit of Rs. 40

10 units at an economic profit of Rs. 67

9 units at an economic profit of Rs. 81

Zero units of output and lose its fixed cost in the short run

MCQ Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 9

In case of break-even point, a firm covers:

0%
variable cost only
0%
fixed cost only
0%
both fixed costs and variable costs
0%
none of the above

A market situation in which there are only two producers is called ________.

0%
monopoly
0%
oligopoly
0%
duopoly
0%
none of the above

In the case of consumer's demand curve determines the price, but in the case of producer ___________.
(i) AR curve determines the price
(ii) AR curve determines the price and income
(iii) MR curve determines the price
(iv) MR curve and AR curve are determines the price

0%
1 only
0%
2 only
0%
3 only
0%
4 only

A firm under monopolistic competition makes only normal profits in the long run.

0%
True
0%
False

Price exceeds MC under monopoly, but not under perfect competition.

0%
True
0%
False

In all forms of imperfect competition, the average revenue curve facing the individual slopes ___________.

0%
upward
0%
downward
0%
horizontally
0%
vertically

If more firms enter a competitive industry the theory predicts that ________.

0%
both marginal and average cost curves rises
0%
the industry short-run supply curves shift upwards to the right
0%
output of every firm increases
0%
the price of the product rises

For a perfectly competitive firm, there are only normal profits in the long run.

0%
True
0%
False

The limit to the long-run growth of a firm under imperfectly competitive conditions is set by ___________.

0%
fear of falling demand
0%
fear of prices falling more than costs
0%
fear of rising costs
0%
fear of external diseconomies

If a monopolist is producing under decreasing cost conditions, increase in demand is beneficial to the society because __________.

0%
consumers get better quality goods
0%
cost of production falls and hence price will follow
0%
goods will be sold in many markets
0%
none of the above

A perfectly competitive firm will always expand output as long as __________.

0%
rising marginal cost is less than price
0%
rising marginal cost is less than the marginal revenue
0%
rising marginal cost is less than the average cost
0%
none of the above

A profit-maximising monopolist in two separate markets will _________.

0%
charge the same price in both markets
0%
always charge a higher price in the market where he sells more
0%
always charge a higher price in the market where he sells less
0%
adjust his sales in the two markets so that his MR in each market just equals his MC.

The difference between monopoly equilibrium and competitive equilibrium is __________.

0%
the MC should rise at the point of equilibrium under perfect competition whereas under monopoly it can rise, fall or remain constant
0%
there is no difference at all
0%
under perfect competition the MC=MR where as under monopolistic conditions this need not be the case
0%
none of the above

Which of the following is correct?

0%
If marginal revenue is positive and falling, total revenue will rise at a decreasing rate.
0%
Total revenue is equal to price times the quantity sold.
0%
Under perfect competition, total revenue is equal to marginal revenue times the quantity sold.
0%
All of the above

A monopoly producer usually earns ___________.

0%
abnormal profits
0%
only normal profits
0%
neither profits nor loss
0%
profits and losses, which are uncertain

If the market price drops from Rs. 100 to Rs. 56, the firm's short run response should be to:

0%
Shut down
0%
Produce 5 units
0%
Produce 20 units
0%
Continue to produce the same number of units as before the drop in price

If marginal revenue exceeds marginal cost, a monopolist should ___________.

0%
increase output
0%
decrease output
0%
keep output the same because profits are maximized when marginal revenue exceeds marginal cost.
0%
raise the price

To maximize its profit, the firm should produce:

0%
0 units
0%
3 units
0%
5 units
0%
7 units

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 the market price is Rs. 31, the firm will produce:

0%
9 units at an economic profit of Rs. 40
0%
10 units at an economic profit of Rs. 67
0%
9 units at an economic profit of Rs. 81
0%
Zero units of output and lose its fixed cost in the short run

Which of the following statements about price and marginal cost in competitive and monopolized markets in true?

0%
In competitive markets, price equals marginal cost; in monopolized, markets, price exceeds marginal cost.
0%
In competitive markets, price equals marginal cost; in monopolized, markets, price equals marginal cost.
0%
In competitive markets, price exceeds marginal cost; in monopolized, markets, price exceeds marginal cost.
0%
In competitive markets, price exceeds marginal cost; in monopolized ,markets, price equals marginal cost.

To maximize profit, the firm should produce ________.

0%
15 units
0%
30 units
0%
35 units
0%
50 units

Complete the table:

Output Sold	Price (Rs.)	MR	TR
1	15	15	15
2	12	__	__
3	9	3	__
4	6	__	24

0%
MR- 3, 9, TR- 27, 24
0%
MR- 9, (-)3, TR- 24, 27
0%
MR- 6, 3, TR- 23, 27
0%
MR- 9, 6, TR- 24, 26

When production equals 5 units, the firm's total revenue is :

0%
Rs. 100
0%
Rs. 270
0%
Rs. 324
0%
Rs. 500

When production equals 4 units, the firm's MR is ________.

0%
72
0%
100
0%
88
0%
76

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 the price of the good is Rs. 13, the firm will produce ____.

0%
4 units at a loss of Rs. 93
0%
6 units at a loss of Rs. 92
0%
zero units at a loss of Rs. 80
0%
8 units at a loss of Rs. 9

Choose the correct answer.
The change in TR due to the sale of an additional units is called?

0%
Total Revenue
0%
Average Revenue
0%
Marginal Revenue
0%
Revenue

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. 34, the perfectly competitive firm will:

0%
Shut down
0%
Produce 10 units
0%
Produce 11 units
0%
Produce 13 units

At any particular level of output, _______ is the sum of marginal revenues.

0%
Total revenue
0%
Average revenue
0%
Price
0%
Total profit

Under which of the following market structures is the price lower and output larger?

0%
Perfect Competition.
0%
Monopolistic Competition.
0%
Monopoly.
0%
Oligopoly.

Choose the correct match, when type of market is not specified:

Column A	Column B
(a) MR > AR	AR decreases at a faster rate than MR
(b) MR < AR	AR increases
(c) MR = AR	AR remains constant
(d) MR > AR	AR is constant

0%
(a)
0%
(b)
0%
(c)
0%
(d)

Quantity (Q)	Variable cost (VC)	Fixed cost (FC)	Total cost (TC)	Average variable cost (AVC)	Average total cost (ATC)	Marginal cost (MC)
0	0	300	300	-	-	-
5	250	300	550	50	110	50
10	470	300	770	47	77	44
15	700	300	1000	46.67	66.67	46
20	980	300	1280	49	64	56
25	1350	300	1650	54	66	74
30	1850	300	2150	61.67	71.67	100
35	2520	300	2820	72	80.57	134
40	3400	300	3700	85	92.5	176
45	4530	300	4830	100.67	107.33	226
50	5950	300	6250	119	125	284

Production (Q)	Price per unit (P)	Total Cost (TC)	Marginal cost (MC)	Total revenue (TR)
0	130	45	-	0
1	124	88	43	124
2	118	125	37	236
3	112	159	34	336
4	106	193	34	424
5	100	230	37	500
6	94	273	43	564
7	88	325	52	616
8	82	389	64	656
9	76	465	76	684

Quantity (Q)	Variable cost (VC)	Fixed cost (FC)	Total cost (TC)	Average variable cost (AVC)	Average total cost (ATC)	Marginal cost (MC)
0	0	300	300	-	-	-
5	250	300	550	50	110	50
10	470	300	770	47	77	44
15	700	300	1000	46.67	66.67	46
20	980	300	1280	49	64	56
25	1350	300	1650	54	66	74
30	1850	300	2150	61.67	71.67	100
35	2520	300	2820	72	80.57	134
40	3400	300	3700	85	92.5	176
45	4530	300	4830	100.67	107.33	226
50	5950	300	6250	119	125	284

Production (Q)	Price per unit (P)	Total Cost (TC)	Marginal cost (MC)	Total revenue (TR)
0	130	45	-	0
1	124	88	43	124
2	118	125	37	236
3	112	159	34	336
4	106	193	34	424
5	100	230	37	500
6	94	273	43	564
7	88	325	52	616
8	82	389	64	656
9	76	465	76	684

Production (Q)	Price per unit (P)	Total Cost (TC)	Marginal cost (MC)	Total revenue (TR)
0	130	45	-	0
1	124	88	43	124
2	118	125	37	236
3	112	159	34	336
4	106	193	34	424
5	100	230	37	500
6	94	273	43	564
7	88	325	52	616
8	82	389	64	656
9	76	465	76	684

CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 9 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

Output Sold	Price (Rs.)	MR =ΔTR/ΔQ	TR = ∑MR = P x Q
1	15	16	15
2	12	(24-15)/(2-1) = 9	2 x 12 = 24
3	9	3	3 x 9 = 27
4	6	(24-27)/(4-3) = (-)3	24

CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 9 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

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