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
Condition for producer equilibrium is:
  • A
    TC=TSC
  • B
    MC=MR
    Correct
  • C
    None of above
  • D
    TR=TVC
2
For maximum profit, the condition is:
  • A
    MC=AC
  • B
    MR=AR
  • C
    MR=MC
    Correct
  • D
    AR=AC
3
____________ is an ideal market?
  • A
    Oligopoly
  • B
    Perfect competition
    Correct
  • C
    Monopoly
  • D
    Monopolistic competition
4
Under which market situation demand curve is linear and parallel to X-axis?
  • A
    Monopoly
  • B
    Perfect competition
    Correct
  • C
    Monopolistic competition
  • D
    Oligopoly
5
For a monopolist, the necessary condition for equilibrium is?
  • A
    P=MC
  • B
    None of above
  • C
    P=MR=MC
  • D
    MC=MR
    Correct
6
Supernormal profit occur, when?
  • A
    Average revenue is equal to average cost
  • B
    Total revenue is equal to variable cost
  • C
    Average revenue is more than average cost
    Correct
  • D
    Total revenue is equal to total cost
7
MR curve=AR=Demand curve is a feature of which kind of market?
  • A
    Oligopoly
  • B
    Perfect competition
    Correct
  • C
    Monopoly
  • D
    Monopolistic competition
8
If under perfect competition, the price lies below the average cost curve, the firm would?
  • A
    Make only normal profits
  • B
    Incur losses
    Correct
  • C
    Profit cannot be determined
  • D
    Make abnormal profits
9
What are the conditions for the long run equilibrium of the competitive firm?
  • A
    All of the above
  • B
    LMC=LAC=P
    Correct
  • C
    P=MR
  • D
    SMC=SAC=LMC
10
Under which market condition firms make only Normal Profit in the long run?
  • A
    Oligopoly
  • B
    Monopolistic competition
    Correct
  • C
    Monopoly
  • D
    Duopoly
11
A firm can sell as much as it wants at the market price. The situation is related to?
  • A
    Perfect competition
    Correct
  • B
    Monopoly
  • C
    Monopolistic competition
  • D
    Oligopoly
12
Globalization has made Indian Market as?
  • A
    Monopsony market
  • B
    Seller market
  • C
    Buyer market
    Correct
  • D
    Monopoly market
13
When AR=Rs. 10 and AC=Rs. 8, the firm makes?
  • A
    Normal profit
  • B
    Supernormal profit
    Correct
  • C
    Net profit
  • D
    Gross profit
14
A competitive firm in the short run incurs losses. The firm continues production, if?
  • A
    P\( > \)AVC
  • B
    P=AVC
  • C
    P\( < \)AVC
  • D
    P\( > \)=AVC
    Correct
15
In the long run the market price of a commodity is equal to its minimum average cost of production under the___________?
  • A
    Perfect competition
    Correct
  • B
    Oligopoly
  • C
    Monopolist competition
  • D
    Monopoly