Top 150+ Solved Micro Economics analysis MCQ Questions Answer
Q. Total profits are maximized where
a. tr equals tc
b. tr curve and tc curve are parallel
c. tr curve and tc curves are parallel and tc exceeds tr
d. tr curve and tc curves are parallel and tr exceeds tc
Q. The equality between MC and MR is
a. a necessary condition for equilibrium of the firm under perfect condition
b. a sufficient condition for equilibrium of the firm under perfect competition
c. a necessary but not sufficient condition for equilibrium of the firm under perfect condition
d. a necessary and sufficient condition for equilibrium of the firm under perfect condition
Q. The condition of equilibrium of the industry under perfectcompetition is
a. mc = mr
b. mc = ac
c. mc = mr = ar
d. mc = ac = ar
Q. In the short-run, a competitive firm can earn
a. normal profit
b. super normal profit
c. loss
d. either a or b or c depending upon the level of average cost.
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 market period, price determination in the case of aperishable commodity is influenced by its
a. demand
b. supply
c. demand as well as the supply
d. none of the above
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. Zero economic profit arises in the long run in the case of
a. perfect competition
b. monopoly
c. monopolistic competition
d. oligopoly