MCQ Economics Class 12 Chapter 4 The Theory of Firm Under Perfect Competition Microeconomics Advertisement MCQ’s For All Chapters – Microeconomics Class 12th 1. A perfectly competitive firm's marginal cost exceeds its marginal revenue at its current output. To increase its profit, the firm willincrease its output.raise its price.lower its price.decrease its output.Question 1 of 162. Which of the following is different about perfect competition and monopolistic competition?Firms in monopolistic competition compete on their product's price as well as its quality and marketing.In monopolistic competition, entry into the industry is unblocked.Perfect competition has a large number of independently acting sellers.Only firms in monopolistic competition can earn an economic profit in the short run.Question 2 of 163. Which statement is correct ?In very short period, supply is perfectly inelastic, price is affected by both demand conditions.Supply curve elasticity depends on time periodBoth a) and b)None of the aboveQuestion 3 of 164. In perfect competition, since the firm is a price taker, the ________ curve is straight lineTotal costMarginal costTotal revenueMarginal revenueQuestion 4 of 165. A firm that shuts down and produces no output incurs a loss equal to itsmarginal costs.total fixed costs.total variable costs.marginal revenue.Question 5 of 166. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?Average revenueAverage costMarginal revenueMarginal costQuestion 6 of 167. While a seller under perfect competition equates price and MC to maximize profits a monopolist should equate?MR and MCAR and MRAR and MCTC and TRQuestion 7 of 168. Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chipearns an economic profit, but should shut down in the short run.incurs an economic loss, but should stay open in the short run.incurs an economic loss and should shut down in the short run.earns an economic profit and should stay open in the short run.Question 8 of 169. In the above figure, if the firm increases its output from Q2 to Q1, it willreduce its marginal revenueincrease its profit.increase its marginal revenue.decrease its profit.Question 9 of 1610. Which one is a feature of monopolistic competition ?Differentiated ProductSelling CostImperfect Knowledge of the MarketAll the aboveQuestion 10 of 1611. Which of the following is an example of perfect competition?AgricultureBanking sectorCar manufacturingRailwaysQuestion 11 of 1612. The short-run supply curve for a perfectly competitive firm is itsmarginal cost curve above the horizontal axis.average cost curve above the horizontal axis.average cost curve above its shutdown point.marginal cost curve above its shutdown point.Question 12 of 1613. Which of the following market types has a large number of firms that sell similar but slightly different products?perfect competitionoligopolymonopolistic competitionmonopolyQuestion 13 of 1614. In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's short-run decision?what price to charge buyers for the productwhether or not to enter or exit an industrythe profit-maximizing level of outputhow much to spend on advertising and sales promotionQuestion 14 of 1615. In a perfectly competitive industry, the industry supply curve is the sum of theaverage total cost curves of all the individual firms.supply curves of all the individual firms.average variable cost curves of all the individual firms.average fixed cost curves of all the individual firms.Question 15 of 1616. Which of the following would create a natural monopoly?requirement of a government license before the firm can sell the good or servicetechnology enabling a single firm to produce at a lower average cost than two or more firmsan exclusive right granted to supply a good or serviceownership of all the available units of a necessary inputQuestion 16 of 16 Loading...
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