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

  • 1. 
    In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?

  • Average
  • Total
  • Variable
  • Marginal

  • 2. 
    In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in_________?

  • Reduction in supply
  • No change in price
  • Fall in price
  • Rise in price

  • 3. 
    Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?

  • Monopolistic competition
  • Monopoly
  • Oligopoly
  • Perfect competition

  • 4. 
    In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?

  • Average revenue
  • Average cost
  • Marginal revenue
  • Marginal cost

  • 5. 
    A firm can sell as much as it wants at the market price. The situation is related to?

  • Monopoly
  • Monopolistic competition
  • Perfect competition
  • Oligopoly

  • 6. 
    Globalization has made Indian Market as?

  • Seller market
  • Buyer market
  • Monopsony market
  • Monopoly market

  • 7. 
    When AR = Rs. 10 and AC = Rs. 8, the firm makes?

  • Gross profit
  • Super normal profit
  • Normal profit
  • Net profit

  • 8. 
    A competitive firm in the short run incurs losses. The firm continues production, if?

  • P = AVC
  • P > AVC
  • P < AVC
  • P > = AVC

  • 9. 
    In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?

  • Monopolist competition
  • Perfect competition
  • Oligopoly
  • Monopoly

  • 10. 
    While a seller under perfect competition equates price and MC to maximize profits a monopolist should equate?

  • MR and MC
  • AR and MR
  • AR and MC
  • TC and TR
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