Equilibrium of firm Perfect Competition and Monopoly Test 01 Preparation Online Shani Malik — May 21, 2018 in Economics • add comment Equilibrium of firm Perfect Competition and Monopoly Test 01 Preparation Online 1. Normal profit is called normal because:A. It is minimum which buyer wants to payB. It is the maximum allowed by govt.C. It is minimum acceptable to the producerD. It is neither very high nor very low Loading... 2. A firm should shut down in the short run if it is not covering its:A. Total cost B. Explicit cost (money outlays)C. Fixed costD. Variable cost Loading... 3. When a competitive firm achieves long run equilibrium then:A. MR = MCB. All of the aboveC. P = MCD. P = ATC Loading... 4. In monopoly and perfect competition the cost curves are:A. Opposite B. SameC. DifferentD. None of these Loading... 5. Under perfect competition:A. AC = AVCB. AR = MRC. AR = ACD. AR = MC Loading... 6. A firm decides to exit the industry when:A. Price is less than LACB. AC starts risingC. TC starts risingD. MC starts rising Loading... 7. The most efficient scale of production of a firm is where:A. LMC is minimumB. SMC is minimumC. SAC is minimumD. LAC is minimum Loading... 8. Profit is maximum when:A. MC and MR curves are parallelB. TC and TR curves cross each other C. AC and AR curves cross each otherD. TC and TR curves are parallel Loading... 9. If a firm shuts down temporarily, it will incur loss equal to:A. AVCB. TVCC. TFCD. AFC Loading... 10. The necessary condition for equilibrium position of a firm is:A. MR = MCB. MC = ACC. MC > PriceD. MC = MR Loading... Loading... Related NTS Results Post:Equilibrium of National income Test 01 Preparation OnlineMarket Equilibrium Test 1 Mcqs Online PreparationBalance of Payments Test 01 Preparation OnlineBiology Mcqs Test 07 Online PreparationBalance of Payments Test 02 Preparation OnlineBalance of Payments Test 04 Preparation OnlineUrogenital System Test 02 Preparation OnlineBank System Test 05 Preparation Online
