Production And Costs CBSE Questions & Answers

Production And Costs

This is Economics Class 12 Production and Costs CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
What happens to TR when MR is decreasing but remains positive
  • A
    Decreases at decreasing rate
  • B
    Increases at decreasing rate
    Correct
  • C
    Decreases at increasing rate
  • D
    Increases at increasing rate
2
What happens to TR when MR is zero
  • A
    TR is Constant
    Correct
  • B
    Decreases at increasing rate
  • C
    Increases at decreasing rate
  • D
    Decreases at decreasing rate
3
What happens to TR when MR is decreasing but remains negative
  • A
    Decreases
    Correct
  • B
    Decreases at increasing rate
  • C
    Decreases at decreasing rate
  • D
    Increases
4
What happens to AR when MR is increasing
  • A
    Decreases and remain positive
    Correct
  • B
    Decreases at decreasing rate
  • C
    Decreases and becomes negative
  • D
    Decreases at increasing rate
5
What happens to AR when MR is zero
  • A
    Decreases at decreasing rate
  • B
    Decreases and remain positive
    Correct
  • C
    Decreases at increasing rate
  • D
    Decreases and becomes negative
6
If all units are sold at same price how will it affect AR and MR?
  • A
    AR will rise but MR will fall
  • B
    Both will rise
  • C
    No effect on both
    Correct
  • D
    Both will fall
7
The price line is
  • A
    The AR curve
  • B
    The Demand curve
  • C
    The MR curve
    Correct
  • D
    The TPP curve
8
Can TR be a horizontal Straight line?
  • A
    May be
  • B
    No
    Correct
  • C
    May not be always
  • D
    Yes
9
The marginal revenue become negative when
  • A
    TR starts falling
    Correct
  • B
    TR stops rising at increasing rate
  • C
    TR is constant and maximum
  • D
    TR starts rising
10
The Average revenue become negative when
  • A
    TR is constant and maximum
  • B
    TR starts rising
  • C
    TR stops rising at increasing rate
  • D
    Never
    Correct
11
The Total revenue become negative when
  • A
    TR is constant and maximum
  • B
    TR starts rising
  • C
    Never
    Correct
  • D
    TR stops rising at increasing rate
12
What happens to total revenue when Marginal revenue is zero
  • A
    TR is also zero
  • B
    TR is maximum and constant
    Correct
  • C
    TR falls
  • D
    TR rises
13
In which market form the Average revenue is equal to marginal Revenue?
  • A
    Monopoly
  • B
    Perfect competition
    Correct
  • C
    Monopolistic competition
  • D
    Oligopoly
14
In which market form the Average revenue is more elastic than the marginal Revenue?
  • A
    Monopolistic competition
  • B
    Oligopoly
  • C
    Perfect competition
  • D
    Monopoly
    Correct
15
The shape of the AFC curve is
  • A
    U shaped
  • B
    Horizontal straight line
  • C
    V shaped
  • D
    Rectangular hyperbola
    Correct