Theory Of Firm Under Perfect Competition CBSE Questions & Answers

Theory Of Firm Under Perfect Competition

This is Economics Class 12 Theory of Firm Under Perfect Competition CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
In perfect competition, in the long run, ______________?
  • A
    There are large profits for the firm
  • B
    There is no profit and no loss for the firm
    Correct
  • C
    There are negligible profits for the firm
  • D
    There are large losses for the firm
2
In perfect competition, when the marginal revenue and marginal cost are equal, profit is?
  • A
    Maximum
    Correct
  • B
    Zero
  • C
    Negative
  • D
    Average
3
In perfect competition, a firm earns profit when __________ exceeds the _____________?
  • A
    Total revenue, total fixed cost
  • B
    Marginal cost, marginal revenue
  • C
    Average revenue, average cost
    Correct
  • D
    Total cost, total revenue
4
In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
  • A
    Average
    Correct
  • B
    Total
  • C
    Variable
  • D
    Marginal
5
In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in_________?
  • A
    Reduction in supply
  • B
    No change in price
  • C
    Fall in price
    Correct
  • D
    Rise in price
6
Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
  • A
    Monopolistic competition
  • B
    Monopoly
  • C
    Oligopoly
  • D
    Perfect competition
    Correct
7
In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
  • A
    Average revenue
  • B
    Average cost
  • C
    Marginal revenue
    Correct
  • D
    Marginal cost
8
The concept of supply curve is relevant only for?
  • A
    Monopoly
  • B
    Monopolistic competition
  • C
    Perfect competition
    Correct
  • D
    Oligopoly
9
Which of the following is an example of perfect competition?
  • A
    Agriculture
    Correct
  • B
    Banking sector
  • C
    Car manufacturing
  • D
    Railways
10
Can MR be negative or zero.
  • A
    Yes
    Correct
  • B
    Can’t say
  • C
    No
  • D
    Only negative but not zero
11
If all units are sold at same price how will it affect AR and MR?
  • A
    B. AR \( > \) MR
  • B
    A.AR=MR
    Correct
  • C
    D. AR+MR=0
  • D
    C. AR\( < \)MR
12
What is price line
  • A
    The demand curve
  • B
    The AR curve
  • C
    The MR curve
    Correct
  • D
    The TR curve
13
Can TR be a horizontal Straight line?
  • A
    May be
  • B
    Can’t say
  • C
    Yes
  • D
    No
    Correct
14
The revenue of a firm per unit sold is its
  • A
    MR
  • B
    AR
    Correct
  • C
    TR
  • D
    TC
15
The product of AR and price at every unit sold is the firm’s
  • A
    TR
    Correct
  • B
    TVC
  • C
    MR
  • D
    AR