NCERT Class 11 Chapter 4 Economics The Theory of the Firm under Perfect Competition MCQ

NCERT Class 11 Chapter 4 Economics The Theory of the Firm under Perfect Competition MCQ | Questions & Answers: If you guys have been searching for the Class 11 Chapter 4 Economics The Theory of the Firm under Perfect Competition MCQ Quiz then this article will be the perfect one for you. The online quiz that has been established below will help you guys in knowing new concepts about The Theory of the Firm under Perfect Competition topic.

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1. The concept of supply curve is relevant only for?

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

2. Which of the following is an example of perfect competition?

A. Agriculture

B. Banking sector

C. Car manufacturing

D. Railways

3. Can MR be negative or zero.

A. Yes

B. Can’t say

C. No

D. Only negative but not zero

4. If all units are sold at same price how will it affect AR and MR?

A. B. AR > MR

B. A. AR = MR

C. D. AR + MR = 0

D. C. AR < MR

5. What is price line

A. The demand curve

B. The AR curve

C. The MR curve

D. The TR curve

6. Can TR be a horizontal Straight line?

A. May be

B. Can’t say

C. Yes

D. No

7. The revenue of a firm per unit sold is its

A. MR

B. AR

C. TR

D. TC

8. The product of AR and price at every unit sold is the firm’s

A. TR

B. TVC

C. MR

D. AR

9. In perfect competition, in the long run, ______________?

A. There are large profits for the firm

B. here is no profit and no loss for the firm

C. There are negligible profits for the firm

D. There are large losses for the firm

10. In perfect competition, when the marginal revenue and marginal cost are equal, profit is?

A. Maximum

B. Zero

C. Negative

D. Average

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11. In perfect competition, a firm earns profit when __________ exceeds the _____________?

A. Total revenue, total fixed cost

B. Marginal cost, marginal revenue

C. Average revenue, average cost

D. Total cost, total revenue

12. In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?

A. Average

B. Total

C. Variable

D. Marginal

13. In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in_________?

A. Reduction in supply

B. No change in price

C. Fall in price

D. Rise in price

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

A. Monopolistic competition

B. Monopoly

C. Oligopoly

D. Perfect competition

15. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?

A. Average revenue

B. Average cost

C. Marginal revenue

D. Marginal cost

16. A firm can sell as much as it wants at the market price. The situation is related to?

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

17. Globalization has made Indian Market as?

A. Seller market

B. Buyer market

C. Monopsony market

D. Monopoly market

18. When AR = Rs. 10 and AC = Rs. 8, the firm makes?

A. Gross profit

B. Supernormal profit

C. Normal profit

D. Net profit

19. A competitive firm in the short run incurs losses. The firm continues production, if?

A. P = AVC

B. P > AVC

C. P < AVC

D. P > = AVC

20. In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?

A. Monopolist competition

B. Perfect competition

C. Oligopoly

D. Monopoly

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21. While a seller under perfect competition equates price and MC to maximize profits a monopolist should equate?

A. MR and MC

B. AR and MR

C. AR and MC

D. TC and TR

22. Marginal revenue in any competitive situation is?

A. TR_n – P_n-1

B. TR_n – TR_n-1

C. TR_n / Q_n-1

D. None of above

23. A rational consumer is a person who?

A. Has perfect knowledge of the market

B. Is not influenced by persuasive advertising

C. Behaves at all times, other things being equal, in a judicious manner

D. Knows the prices of goods in different market and buys the cheapest

24. In which of the following types of market structures, are resources, assumed to be mobile?

A. Oligopoly

B. Perfect competition

C. Monopolistic competition

D. Monopoly

25. At producer’s equilibrium when MR = MC, the firm earns only

A. Abnormal loss

B. Abnormal profit

C. Normal Profit

D. Normal loss