CBSE Questions for Class 11 Commerce Economics The Theory Of The Firm Under Perfect Competition Quiz 7 - MCQExams.com

The concept of supply curve is relevant only for __________.
  • perfect competition
  • monopoly
  • monopolistic competition
  • oligopoly
If an individual seller, in a perfectly competitive market, wishes to double his sales, he would __________.
  • improve the quality of his product
  • lower his price to half
  • simply supply double the quantity of his product
  • advertise the superiority of his product.
In a breakeven situation, what happens to profit and loss?
  • Both are negative
  • Both are zero
  • Profit is zero, heavy losses are existing
  • Loss is zero, small amount of profit is existing
When supply curve is upward sloping and originates from the starting point, elasticity is __________.
  • infinity
  • less than one
  • zero
  • one
A firm maximises its profit when $$TR = TC$$.
  • True
  • False
$$AR < AVC$$ is a point of _________.
  • break-even
  • discontinuation of production
  • continuation of production
  • none of the above
Total revenue is a straight positively sloping line, having a constant slope, from origin under:
  • perfect competition
  • monopoly
  • monopolistic competition
  • oligopoly
Short-run supply curve of the perfectly competitive firm is represented by ___________.
  • short-run marginal cost curve
  • short-run average cost curve
  • long-run average cost curve
  • only that part of marginal cost curve which lies above the average variable cost.
Under which market structure, average revenue of firm is equal to its marginal revenue?
  • Oligopoly
  • Monopoly
  • Perfect competition
  • Monopolistic competition
Assume that a firm's total revenue curve takes the form of a straight line, which passes through the origin. We may deduce that __________.
  • prices exceeds marginal revenue
  • price and marginal revenue are equal
  • total costs and total revenue are equal
  • elasticity of demand for the product is unity
The average revenue curve of a firm in perfect competition is __________.
  • U-shaped
  • l-shaped
  • Veritcal
  • Horizontal
When AR is constant, MR is __________.
  • equal to AR
  • more than AR
  • less than AR
  • equal to zero
A profit maximizing firm will stop production in the short run if price is __________.
  • less than average cost
  • below the marginal cost
  • less than average variable cost
  • equal to average cost
The short-run supply curve of a firm under perfect competition is the same as _________.
  • average variable cost curve
  • marginal cost curve
  • marginal cost curve above average variable cost curve
  • average total cost curve.
In general, if the average revenue curve is a straight line, the marginal revenue curve will be _________.
  • U-shaped
  • a straight line
  • C-shaped
  • bell-shaped
Under perfect competition:
  • MR curve is below AR curve
  • Price $$=$$ AR $$=$$ MR
  • AR remains constant
  • Both (b) and (c)
When price reduces as output increases, $$AR = MR$$.
  • True
  • False
Supply is more elastic in case of ______________.
  • very short period
  • short period
  • long period
  • both (b) and (c)
Movement along the supply curve occurs due to ____________.
  • increase in own price of the commodity
  • decrease in own price of the commodity
  • factors other than own price of the commodity
  • both (a) and (b)
The supply of durable goods is usually _____________.
  • more elastic
  • less elastic
  • perfectly elastic
  • perfectly inelastic
When market supply (assuming only three sellers in the market) is 120 units, and sum total of individual supply of two sellers is 76 units, the supply of third individual seller will be ________.
  • 44 units
  • 196 units
  • 50 units
  • 200 units
Imposition of GST, shifts the supply curve __________.
  • to the right
  • to the left
  • to the right as well as to the left
  • none of these
Graphical presentation of supply curve of an individual firm in the market is called _________________.
  • producer's demand curve
  • consumer's demand curve
  • individual supply curve
  • market supply curve
When 15% increase in price of the commodity causes 10% increase in the quantity supplied, then elasticity of supply is _____________.
  • elastic
  • inelastic
  • perfectly elastic
  • perfectly inelastic
Write True or False with a reason.
In the long period, elasticity of supply tends to be lower than in the short period.
  • True
  • False
 Write True or False with a reason.
If a straight line upward sloping supply curve shoots from the X-axis, elasticity of supply $$>1$$.
  • True
  • False
Write True or False with a reason.
If a straight line upward sloping supply curve shoots from the origin, elasticity of supply is always equal to one.
  • True
  • False
 Write True or False with a reason.
When a firm is using some rigid technology, its $${E}_{s}$$ tends to be high.
  • True
  • False
 Write True or False with a reason.
If a straight line upward sloping supply curve shoots from the Y-axis, elasticity of supply $$< 1$$.
  • True
  • False
At break-even point, a firm makes:
  • normal profits
  • super-normal profits
  • extra-normal losses
  • none of the above
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 11 Commerce Economics Quiz Questions and Answers