CBSE  /  Class 11  /  Economics  /  The Theory of the Firm under Perfect Competition

  • 1. 
    Which of the following is an example of perfect competition?

  • Agriculture
  • Banking sector
  • Car manufacturing
  • Railways

  • 2. 
    Can MR be negative or zero.

  • Yes
  • Can’t say
  • No
  • Only negative but not zero

  • 3. 
    If all units are sold at same price how will it affect AR and MR?

  • B. AR > MR
  • A. AR = MR
  • D. AR + MR = 0
  • C. AR < MR

  • 4. 
    What is price line

  • The demand curve
  • The AR curve
  • The MR curve
  • The TR curve

  • 5. 
    Can TR be a horizontal Straight line?

  • May be
  • Can’t say
  • Yes
  • No

  • 6. 
    The revenue of a firm per unit sold is its

  • MR
  • AR
  • TR
  • TC

  • 7. 
    The product of AR and price at every unit sold is the firm’s

  • TR
  • TVC
  • MR
  • AR

  • 8. 
    In perfect competition, in the long run, ______________?

  • There are large profits for the firm
  • There is no profit and no loss for the firm
  • There are negligible profits for the firm
  • There are large losses for the firm

  • 9. 
    In perfect competition, when the marginal revenue and marginal cost are equal, profit is?

  • Maximum
  • Zero
  • Negative
  • Average

  • 10. 
    In perfect competition, a firm earns profit when __________ exceeds the _____________?

  • Total revenue, total fixed cost
  • Marginal cost, marginal revenue
  • Average revenue, average cost
  • Total cost, total revenue
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