Profit Maximization Test 01 Mcqs Preparation Online Shani Malik — April 24, 2018 in Economics • add comment Profit Maximization Test 01 Mcqs Preparation Online 1. Profit is maximum when:A. Distance between AR and AC is maximumB. None of theseC. Distance between TR and TC is maximumD. Distance between MR and MC is maximum Loading... 2. The basic goal of a firm is to:A. Maximize outputB. Maximize profitC. Maximize welfare of its employeesD. Maximize revenues Loading... 3. Profit is maximum when:A. MC and MR curves are parallelB. TC and TR curves are parallel C. None of theseD. AC and AR curves are parallel Loading... 4. Profit is maximum when:A. Slope of TC and TR is the sameB. None of theseC. Slope of MC and MR is the sameD. Slope of AC and AR is the same Loading... 5. A firm earns economic profit when total profit exceeds:A. Explicit costsB. Implicit costsC. Variable costsD. Normal profit Loading... 6. The necessary condition for equilibrium position of a firm is:A. MC = AC B. MC > MRC. MC = MRD. MC > Price Loading... 7. Normal profit is:A. Part of economic profitB. Part of total costC. Total revenue minus total cost D. Total revenue minus implicit cost Loading... 8. A firm's MR exceeds its MC, maximum profit rule requires that firm to:A. Increase in output in imperfect but not necessarily in perfect competitionB. Increase in output in both perfect and imperfect competition C. Decrease in output in both perfect and imperfect competitionD. Increase in perfect competition but not necessarily in imperfect competition Loading... 9. At the point of equilibrium of firm (under perfect competition):A. MC curve must be risingB. MC curve must be fallingC. None of theseD. MR curve must be rising Loading... 10. Economic profit is:A. Total revenue minus total costB. Part of total costC. Total variable cost minus total fixed costD. Total revenue minus explicit cost Loading... Loading...
