MCQ Economics Class 12 Chapter 4 The Theory of Firm Under Perfect Competition Microeconomics Advertisement MCQ’s For All Chapters – Microeconomics Class 12th 1. An industry with a large number of firms, differentiated products, and free entry and exit is calledoligopoly.monopoly.monopolistic competition.perfect competition.Question 1 of 162. Suppose the cost curves in the above figure apply to all firms in the industry. If the initial price is P1, firms aremaking an economic profit and some firms will leave the industry.incurring an economic loss and some firms will leave the industry.making an economic profit and some firms will enter the industry.incurring an economic loss and some firms will enter the industry.Question 2 of 163. Market situation where there is only one buyer is:MonopolyMonopsonyDuropolyNone of theseQuestion 3 of 164. Can TR be a horizontal Straight line?May beCan’t sayYesNoQuestion 4 of 165. Which of the following market types has all firms selling products so identical that buyers do not care from which firm they buy?perfect competitionoligopolymonopolistic competitionmonopolyQuestion 5 of 166. If the cost curves shown in the above figure apply to all firms in the industry and the initial price is P1, in the long run the price will begreater than P1.zero.equal to P1.less than P1Question 6 of 167. External economies are factors beyond the control of an individual firm that ________ as the total industry output increases.raise its marginal revenueraise its costslower its costslower its profitQuestion 7 of 168. In perfect competition, a firm:Determines priceObtains priceBoth a) and b)None of theseQuestion 8 of 169. If demand for a seller's product is perfectly elastic, which of the following is correct?There is no incentive to sell at a price below the market price.It will not sell any output at all if it tries to price its product above the market price.There are a very large number of perfect substitutes for the seller's product.All of the above answers are correct.Question 9 of 1610. If the slope of the long-run supply curve for a perfectly competitive industry is positive, the industry experiencesinternal economies.external economies.external diseconomies.internal diseconomies.Question 10 of 1611. Among the obstacles to the efficient allocation of resources are all of the following EXCEPTcompetition.monopoly.external benefits.external costs.Question 11 of 1612. In the short run, a perfectly competitive firm canearn a normal profit.incur an economic loss.earn an economic profit.earn an economic profit, earn a normal profit, or incur an economic loss.Question 12 of 1613. The demand for a product produced in a perfectly competitive market permanently increases. In the short run the pricerises and each firm produces less output.does not change because each firm produces more output.rises and each firm produces more output.does not change as new firms enter the industry.Question 13 of 1614. Which is a characteristic of the market ?One AreaPresence of both Buyers and SellersSingle Price of the CommodityAll the aboveQuestion 14 of 1615. In perfect competition, in the long run, ______________?There are large profits for the firmThere is no profit and no loss for the firmThere are negligible profits for the firmThere are large losses for the firmQuestion 15 of 1616. The elasticity at a point on a straight line supply curve passing through the origin will be3.01.04.02.0Question 16 of 16 Loading...
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