Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. If price is equal to average cost, in the short-run, the competitivefirm can earn
a. Only normal profit
b. Super normal profit
c. Loss
d. All of the above
Q. If price is greater than average cost, in the short-run, thecompetitive firm can earn
a. Normal profit
b. Super normal profit
c. Loss
d. All of the above
Q. If price is less than average cost, in the short-run, the competitivefirm can earn
a. Normal profit
b. Super normal profit
c. Loss
d. All of the above
Q. In the long run, a competitive firm can earn
a. Normal profit
b. Super normal profit
c. Loss
d. Any of the above
Q. The importance of time element in price determination was firstlyanalyzed by
a. Adam smith
b. Alfred Marshall
c. David Ricardo
d. J M Keynes
Q. In the short-period,
a. All factors are fixed
b. Some factors are fixed and others are variable
c. All factors are variable
d. None of the above
Q. In the long-period,
a. All factors are fixed
b. Some factors are fixed and others are variable
c. All factors are variable
d. None of the above
Q. At the optimum short-run level of output, the firm will be
a. Maximizing total profit
b. Minimizing total losses
c. Either maximizing total profit or minimizing total losses
d. Maximizing profit per unit
Q. When the perfectly competitive firm and industry are both in longrun equilibrium
a. P = MR = SMC = LMC
b. P = MR = SAC = LAC
c. P = MR =Lowest point on the LAC curve
d. All of the above
Q. Monopolistic competition is characterized by
a. Few firms’ selling differentiated products
b. Many firms selling homogeneous product
c. Few firms selling homogeneous product
d. Many firms selling differentiated products
Q. The theory of monopolistic competition was popularized by
a. Marshall
b. Keynes
c. Chamberlin
d. Pigou
Q. A monopolistically competitive market is distinguished from perfectcompetition by the fact that
a. Few sellers
b. It has few buyers
c. It deals with differentiated products
d. None of the above
Q. Excess capacity is a hallmark of
a. Perfect competition
b. Monopoly
c. Oligopoly
d. Monopolistic competition