Q. The concept of supply curve is relevant only for?
✅ Correct Answer: (C)
Perfect competition
The Theory of the Firm under Perfect Competition MCQs with answers
Dear candidates you will find MCQ questions of 11th Class - Microeconomics: Introductory Microeconomics | Chapter: The Theory of the Firm under Perfect Competition here. Learn these questions and prepare yourself for coming examinations. You can check the right answer of any question by clicking the option or by clicking view answer button.
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Q. Which of the following is an example of perfect competition?
✅ Correct Answer: (A)
Agriculture
Q. If all units are sold at same price how will it affect AR and MR?
✅ Correct Answer: (B)
AR = MR
Q. In perfect competition, in the long run, ______________?
✅ Correct Answer: (B)
There is no profit and no loss for the firm
Q. In perfect competition, when the marginal revenue and marginal cost are equal, profit is?
✅ Correct Answer: (A)
Maximum
Q. In perfect competition, a firm earns profit when __________ exceeds the _____________?
✅ Correct Answer: (C)
Average revenue, average cost
Q. In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
✅ Correct Answer: (A)
Average
Q. In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in_________?
✅ Correct Answer: (C)
Fall in price
Q. Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
✅ Correct Answer: (D)
Perfect competition
Q. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
✅ Correct Answer: (C)
Marginal revenue
Q. A firm can sell as much as it wants at the market price. The situation is related to?
✅ Correct Answer: (C)
Perfect competition
Q. When AR = Rs. 10 and AC = Rs. 8, the firm makes?
✅ Correct Answer: (B)
Super normal profit
Q. A competitive firm in the short run incurs losses. The firm continues production, if?
✅ Correct Answer: (D)
P > = AVC
Q. In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?
✅ Correct Answer: (B)
Perfect competition
Q. While a seller under perfect competition equates price and MC to maximize profits a monopolist should equate?
✅ Correct Answer: (A)
MR and MC
Q. A rational consumer is a person who?
✅ Correct Answer: (A)
Has perfect knowledge of the market
Q. In which of the following types of market structures, are resources, assumed to be mobile?
✅ Correct Answer: (B)
Perfect competition
Q. At producer’s equilibrium when MR = MC, the firm earns only
✅ Correct Answer: (C)
Normal Profit
Q. Beyond producer’s equilibrium when MR
✅ Correct Answer: (C)
Abnormal loss
Q. Before producer’s equilibrium when MR > MC, the firm earns only
✅ Correct Answer: (D)
Abnormal profit
Q. The elasticity at a point on a straight line supply curve passing through the origin will be
✅ Correct Answer: (B)
1.0
Q. The elasticity at a point on a straight-line supply curve passing through the origin making an angle of 45° will be
✅ Correct Answer: (D)
1.0
Q. When ___________, the firms are earning just normal profit:
✅ Correct Answer: (A)
AC = AR
Q. Which of the following is the condition for equilibrium of a firm?
✅ Correct Answer: (B)
MR = MC
Q. In perfect competition, since the firm is a price taker, the ________ curve is straight line
✅ Correct Answer: (D)
Marginal revenue
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