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Class 11 Economics MCQ Chapter 12 The Theory of the Firm under Perfect Competition
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The Theory of the Firm under Perfect Competition
Chapter: 12
PART – (B) INTRODUCTORY MACROECONOMICS
| MCQ |
1. Is the concept of supply curve relevant only for?
(a) Monopoly.
(b) Monopolistic competition.
(c) Perfect competition.
(d) Oligopoly.
Ans: (c) Perfect competition
2. A perfectly competitive firm faces:
(a) Constant price.
(b) Constant average revenue.
(c) Constant marginal revenue.
(d) All of these.
Ans: (d) All of these.
3. Under perfect competition:
(a) AR = MR
(b) AR > MR
(c) AR = MR
(d) None of the above.
Ans: (a) AR = MR
4. Can MR be negative or zero?
(a) Yes.
(b) Can’t say.
(c) No.
(d) None of the above.
Ans: (a) Yes.
5. Price of a commodity is:
(a) TR
(b) MR
(c) AR
(d) None of these.
Ans: (c) AR
6. In a perfectly competitive market price would be equivalent to:
(a) Average revenue.
(b) Marginal revenue.
(c) Total revenue.
(d) None of these.
Ans: (a) Average revenue.
7. If all units are sold at the same price how will it affect AR and MR?
(a) B. AR > MR.
(b) A. AR = MR.
(c) D. AR + MR = 0.
(d) C. AR < MR.
Ans: (b) A. AR = MR.
8. The Average Revenue become negative when:
(a) TR is constant and maximum.
(b) Never.
(c) TR stops rising at an increasing rate.
(d) TR starts rising.
Ans: (b) Never.
9. Marginal Revenue is:
(a) Addition to the total revenue on the sale of an additional unit of output.
(b) Additional cost involved in production.
(c) Same as total revenue.
(d) Addition to the total revenue on the production of an additional unit of output.
Ans: (a) Addition to the total revenue on the sale of an additional unit of output
10. What is price line:
(a) The demand curve.
(b) The AR curve.
(c) The MR curve.
(d) The TR curve.
Ans: (c) The MR curve.
11. What happens to TR when MR is:
(a) Decreases at an increasing rate.
(b) Increases.
(c) Decreases at a decreasing rate.
(d) Decreases.
Ans: (d) Decreases.
12. The relationship between TR and MR when price falls is:
(a) TR rises but MR falls.
(b) TR rises and then falls but MR falls with sales.
(c) TR falls but MR rises.
(d) Both rise in sales.
Ans: (b) TR rises and then falls but MR falls with sales.
13. Can TR be a horizontal Straight line?
(a) No.
(b) Yes.
(c) All of the above.
(d) None of the above.
Ans: (a) No.
14. What happens to AR when MR is increasing?
(a) Decreases and remains positive.
(b) Decreases and becomes negative.
(c) Decreases at an increasing rate.
(d) Decreases at a decreasing rate.
Ans: (a) Decreases and remains positive.
15. The revenue of a firm per unit sold is its:
(a) MR.
(b) AR.
(c) TR.
(d) TC.
Ans: (b) AR.
