CBSE Questions for Class 11 Commerce Economics The Theory Of The Firm Under Perfect Competition Quiz 6 - MCQExams.com

When price is less than average variable cost at the profit-maximising level of output, a firm should __________.
  • produce where marginal revenue equals marginal cost if it is operating in the short run.
  • produce where marginal revenue equals marginal cost if it is operating is the long run.
  • shutdown, since it will lose nothing in that case.
  • shutdown, since it cannot even cover its variable costs if it stays in business.
The supply is ________, when a greater change in price leads to smaller change in quantity supplied.
  • relatively more elastic
  • perfectly elastic
  • perfectly inelastic
  • relatively inelastic
Relatively in inelastic supply means: _____________.
  • $$E_s > 1$$
  • $$E_s <1$$
  • $$E_s =1$$
  • $$E_s=0$$
Which of the following types of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
  • Monopoly.
  • Oligopoly.
  • Perfect Competition.
  • Monopolistic Competition.
Under ________ market condition, firms in the industry make only normal profit in the long run.
  • perfect competition
  • monopoly
  • oligopoly
  • all of above
If the inputs of all but one factor are held constant, then_________will vary with the quantity used of the variable factor.
  • Total Product
  • Average Product
  • Marginal Product
  • All of the above
Which of the following statements is incorrect?
  • Even monopolistics can earn losses
  • Firms in a perfectly competitive market are price takers.
  • It is always beneficial for a firm in a perfectly competitive market to discriminate price
  • Kinked demand curve is related to an oligopolistic market.
Elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by __________.
  • Percentage change in income
  • Percentage change in quantity demanded of goods
  • Percentage change in price
  • Percentage change in taste and preference
The elasticity of supply is defined as the.
  • Responsiveness of the quantity supplied of a good to a change in its price
  • Responsiveness of the quantity supplied of a good without in its price
  • Responsiveness of the quantity demanded of a good to a change in its price
  • Responsiveness of the quantity demanded of a good without change in its price
If any natural calamity occured , what will happen to PPF?
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  • No change
  • Shift rightwards
  • Shift leftwards
  • It will become a straight line
Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its.
  • Demand
  • Price
  • Cost of production
  • State of technology
If the percentage change in supply is less then the percentage change in price it is called.
  • Unit elasticity of supply
  • Perfectly elastic supply
  • More elastic supply
  • Inelastic supply
Elasticity of supply is zero means.
  • Perfectly inelasticity supply
  • Perfectly elastic supply
  • Imperfectly elastic supply
  • None of the above
If the quantity supplied exactly equal to the relative change in price than the elasticity of supply is?
  • Less than one
  • Greater than one
  • One
  • None of these
The supply function is given as Q$$=-100+10$$P. Find the elasticity using point method, when price is Rs. $$15$$.
  • $$4$$
  • $$-3$$
  • $$-5$$
  • $$3$$
A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is?
  • Zero
  • Infinite
  • Equal to one
  • Greater than zero but less than one
Refer table and find the value of $$Z$$.
  • $$14$$
  • $$1$$
  • $$0.07$$
  • $$2$$
If supply of a commodity falls by $$20$$% due to decrease in price of the commodity by $$10$$%, then elasticity of supply will be _______.
  • elastic
  • unit elastic
  • perfectly elastic
  • none of the above
The percentage change in quantity supplied due to percentage change in price is called __________.
  • elasticity of supply
  • law of supply
  • supply curve
  • elasticity of demand
When supply of a commodity remain same with change in price, this situation is called as _____________.
  • elastic supply
  • inelastic supply
  • perfectly elastic supply
  • perfectly inelastic supply
In case of perfectly elastic supply, the supply curve is _________.
  • rising
  • horizontal
  • falling
  • vertical
If the price of bananas rises from $$Rs. 10$$ per dozen to $$Rs. 15$$ per dozen and the supply increases from $$100$$ dozens to $$125$$ dozens. Elasticity of supply is ______________.
  • $$.50$$
  • $$.65$$
  • $$(-).50$$
  • $$(-).65$$
Elasticity of supply for a positively sloping supply curve that starts from price axis is ______.
  • zero
  • greater than one
  • less than one
  • equal to one
Any straight-line supply curve, which cuts the x axis, will have _____________.
  • an elasticity greater than one
  • unitary elasticity of supply
  • an elasticity less than one
  • zero elasticity of supply
If the price of apples rises from $$Rs. 30$$ per kg to $$Rs. 40$$ per kg and the supply increases from $$240\ kg$$ to $$300\ kg$$, Elasticity of supply is _________.
  • $$.75$$
  • $$.67$$
  • $$(-).67$$
  • $$(-).75$$
Any supply curve which is a straight line passing through the origin, whatever its slope, will possess __________.
  • unitary elasticity of supply
  • an elasticity, which is greater than one
  • an elasticity, which is less than one
  • an elasticity, which is greater than zero
Under perfect competition losses incurred by the firm at the shut down point are equal to which cost?
  • AVC
  • TFC
  • AC
  • MC
At every level of production AR is equal to MR in case of ________.
  • perfect competition
  • monopoly
  • oligopoly
  • all of the above
A large number of buyers and sellers is a feature of _____________.
  • Monopoly
  • Perfect competition
  • Discriminating monopoly
  • Oligopoly
Under perfect competition, at the shut down point, revenue earned by the firm covers which cost?
  • AC
  • MC
  • AVC
  • AFC
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