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
The break- even point is only where MR=MC
  • A
    None of these
  • B
    Can’t say
  • C
    Yes
  • D
    No
    Correct
2
The break- even point where TR=TC, the firm earns normal profits only
  • A
    No
  • B
    Yes
    Correct
  • C
    Can’t say
  • D
    None of these
3
The break- even point where TR=TC, the firm cannot earn abnormal profits
  • A
    FALSE
  • B
    Can’t say
  • C
    None of these
  • D
    1
    Correct
4
When a firm’s TR\( > \)TC, it can earn maximum profits
  • A
    None of these
  • B
    1
    Correct
  • C
    FALSE
  • D
    Can’t say
5
When a firm’s TR\( > \)TC, it can still cover its normal profit
  • A
    1
    Correct
  • B
    Can’t say
  • C
    None of these
  • D
    FALSE
6
When a firm’s TR\( > \)TC, it cannot cover its normal profit
  • A
    Can’t say
  • B
    TRUE
  • C
    None of these
  • D
    0
    Correct
7
When a firm’s TR\( > \)TC, it does not earn maximum profits
  • A
    0
    Correct
  • B
    TRUE
  • C
    Can’t say
  • D
    None of these
8
When a firm’s TR\( < \)TC, it can still cover its normal profit
  • A
    0
    Correct
  • B
    Can’t say
  • C
    None of these
  • D
    TRUE
9
When a firm’s TR\( > \)TC, it earns normal profit and abnormal profits
  • A
    Can’t say
  • B
    None of these
  • C
    1
    Correct
  • D
    FALSE
10
A firm maximizes its profits only when MR=MC
  • A
    FALSE
  • B
    1
    Correct
  • C
    None of these
  • D
    Can’t say
11
A firm maximizes its profits just when MR=MC and it is sufficient
  • A
    Can’t say
  • B
    TRUE
  • C
    None of these
  • D
    0
    Correct
12
At producer’s equilibrium when MR=MC and then
  • A
    MC\( > \) but \( < \) MR
  • B
    MC\( > \)MR
    Correct
  • C
    MC\( < \)MR
  • D
    None of these
13
If the price of the commodity falls by 10\(\% \) and consequently the quantity supplied decreases by 20 \(\% \), then the elasticity of supply will be
  • A
    0.5
  • B
    1
  • C
    -2
  • D
    2.0
    Correct
14
If the price of the commodity rises by 10 \(\% \) and consequently the quantity supplied rises by 20 \(\% \), then the elasticity of supply will be
  • A
    2.0
    Correct
  • B
    1
  • C
    Cannot be calculated
  • D
    -2
15
If the price of the commodity falls by 10 \(\% \) and consequently the quantity supplied rises by 20 \(\% \), then the elasticity of supply will be
  • A
    Can’t say
    Correct
  • B
    1
  • C
    -2
  • D
    0.5