MCQ Questions for Class 11 Commerce Economics The Theory Of The Firm Under Perfect Competition Quiz 6

When price is less than average variable cost at the profit-maximising level of output, a firm should __________.

0%
produce where marginal revenue equals marginal cost if it is operating in the short run.
0%
produce where marginal revenue equals marginal cost if it is operating is the long run.
0%
shutdown, since it will lose nothing in that case.
0%
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.

0%
relatively more elastic
0%
perfectly elastic
0%
perfectly inelastic
0%
relatively inelastic

Relatively in inelastic supply means: _____________.

0%
$E_s > 1$
0%
$E_s <1$
0%
$E_s =1$
0%
$E_s=0$

Which of the following types of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?

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

Under ________ market condition, firms in the industry make only normal profit in the long run.

0%
perfect competition
0%
monopoly
0%
oligopoly
0%
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.

0%
Total Product
0%
Average Product
0%
Marginal Product
0%
All of the above

Which of the following statements is incorrect?

0%
Even monopolistics can earn losses
0%
Firms in a perfectly competitive market are price takers.
0%
It is always beneficial for a firm in a perfectly competitive market to discriminate price
0%
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 __________.

0%
Percentage change in income
0%
Percentage change in quantity demanded of goods
0%
Percentage change in price
0%
Percentage change in taste and preference

Explanation

$=\dfrac{\%\Delta Q}{\%\Delta P}$ .
The elasticity of supply is measured by dividing the percentage change in quantity supplied of a good by the Percentage change in price

The elasticity of supply is defined as the.

0%
Responsiveness of the quantity supplied of a good to a change in its price
0%
Responsiveness of the quantity supplied of a good without in its price
0%
Responsiveness of the quantity demanded of a good to a change in its price
0%
Responsiveness of the quantity demanded of a good without change in its price

If any natural calamity occured , what will happen to PPF?

0%
No change
0%
Shift rightwards
0%
Shift leftwards
0%
It will become a straight line

Elasticity of supply refers to the degree of responsiveness of supply of a good to changes in its.

0%
Demand
0%
Price
0%
Cost of production
0%
State of technology

If the percentage change in supply is less then the percentage change in price it is called.

0%
Unit elasticity of supply
0%
Perfectly elastic supply
0%
More elastic supply
0%
Inelastic supply

Explanation

$\%$

$\Delta$ Q

$<$

$\%$

$\Delta$ P then there is less then one elastic supply i.e.,

$e < 1$ .
Supply is price elastic when the percentage change in quantity supplied is greater than the percentage change in price, and supply is price inelastic when the percentage change in quantity supplied is less than the percentage change in price.

Elasticity of supply is zero means.

0%
Perfectly inelasticity supply
0%
Perfectly elastic supply
0%
Imperfectly elastic supply
0%
None of the above

Explanation

Elasticity of supply is zero means perfectly inelastic supply

$(Es = 0)$ and shape of curve will be vertical.

If the quantity supplied exactly equal to the relative change in price than the elasticity of supply is?

0%
Less than one
0%
Greater than one
0%
One
0%
None of these

Explanation

$\Delta Q=\Delta P$ the

$Es=1$ (one).
So if the quantity supplied exactly equal to the relative change in price than the elasticity of supply is 1

The supply function is given as Q

$=-100+10$ P. Find the elasticity using point method, when price is Rs.

$15$ .

0%
$4$
0%
$-3$
0%
$-5$
0%
$3$

A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is?

0%
Zero
0%
Infinite
0%
Equal to one
0%
Greater than zero but less than one

Refer table and find the value of

$Z$ .

0%
$14$
0%
$1$
0%
$0.07$
0%
$2$

Explanation

$Elasticity = \dfrac {\% \triangle Q\text {supplied of chicken}}{\% \triangle P\text {of chicken}}$

$1 = \dfrac {14}{\% \triangle P\text {of chicken}}$

$14 = \%$ change in price of chicken.

If supply of a commodity falls by

$20$ % due to decrease in price of the commodity by

$10$ %, then elasticity of supply will be _______.

0%
elastic
0%
unit elastic
0%
perfectly elastic
0%
none of the above

The percentage change in quantity supplied due to percentage change in price is called __________.

0%
elasticity of supply
0%
law of supply
0%
supply curve
0%
elasticity of demand

When supply of a commodity remain same with change in price, this situation is called as _____________.

0%
elastic supply
0%
inelastic supply
0%
perfectly elastic supply
0%
perfectly inelastic supply

In case of perfectly elastic supply, the supply curve is _________.

0%
rising
0%
horizontal
0%
falling
0%
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 ______________.

0%
$.50$
0%
$.65$
0%
$(-).50$
0%
$(-).65$

Explanation

$E_{s} = \dfrac {\triangle q}{\triangle p}\times \dfrac {p}{q}$

$= \dfrac {25}{5}\times \dfrac {10}{100} = 0.5$ .

Elasticity of supply for a positively sloping supply curve that starts from price axis is ______.

0%
zero
0%
greater than one
0%
less than one
0%
equal to one

Any straight-line supply curve, which cuts the x axis, will have _____________.

0%
an elasticity greater than one
0%
unitary elasticity of supply
0%
an elasticity less than one
0%
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 _________.

0%
$.75$
0%
$.67$
0%
$(-).67$
0%
$(-).75$

Explanation

$Es = \dfrac {\triangle q}{\triangle p} \times \dfrac {p}{q}$

$\triangle q = (300 - 240) = 60$

$\triangle p = (40 - 30) = 10$

$= \dfrac {60}{10}\times \dfrac {30}{240}$

$= .75$ .

Any supply curve which is a straight line passing through the origin, whatever its slope, will possess __________.

0%
unitary elasticity of supply
0%
an elasticity, which is greater than one
0%
an elasticity, which is less than one
0%
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?

0%
AVC
0%
TFC
0%
AC
0%
MC

At every level of production AR is equal to MR in case of ________.

0%
perfect competition
0%
monopoly
0%
oligopoly
0%
all of the above

A large number of buyers and sellers is a feature of _____________.

0%
Monopoly
0%
Perfect competition
0%
Discriminating monopoly
0%
Oligopoly

Under perfect competition, at the shut down point, revenue earned by the firm covers which cost?

0%
AC
0%
MC
0%
AVC
0%
AFC

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

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Practice Class 11 Commerce Economics Quiz Questions and Answers

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

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Practice Class 11 Commerce Economics Quiz Questions and Answers

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