Class 11 Economics MCQ Chapter 9 Producer’s Equilibrium Question Answer English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Economics MCQ Chapter 9 Producer’s Equilibrium and select need one. AHSEC Class 11 Economics Objective Type Solutions in English As Per AHSEC New Book Syllabus Download PDF. AHSEC Economics MCQ Class 11.
Class 11 Economics MCQ Chapter 9 Producer’s Equilibrium
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 11 Economics Multiple Choice Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Economics MCQ in English for All Chapters, You can practice these here.
Producer’s Equilibrium
Chapter: 9
| PART – A : MICROECONOMICS |
Choose the Correct Option:
1. Who is a producer?
(i) One who consumes.
(ii) One who distributes.
(iii) One who sells only.
(iv) One who produces and sells.
Ans: (iv) One who produces and sells.
2. What does a producer aim to maximize?
(i) Cost.
(ii) Loss.
(iii) Profit.
(iv) Output.
Ans: (iii) Profit.
3. In which situation is a producer said to be in equilibrium?
(i) Profit = 0.
(ii) TR − TC.
(iii) TR − TC is minimum.
(iv) TR − TC is maximum.
Ans: (iv) TR − TC is maximum.
4. Producer’s equilibrium is attained when:
(i) Total output is highest.
(ii) Profit is maximum.
(iii) Price is maximum.
(iv) Cost is minimum.
Ans: (ii) Profit is maximum.
5. Profit is equal to:
(i) TR + TC.
(ii) TR − TC.
(iii) TC − TR.
(iv) TR × TC.
Ans: (ii) TR − TC.
6. What is the minimum condition to attain producer’s equilibrium?
(i) TC > TR.
(ii) MR = MC.
(iii) MR − MC.
(iv) TR = AR.
Ans: (ii) MR = MC.
7. Which method is used for determining equilibrium as per syllabus?
(i) TR − TC Method.
(ii) MR − MC Method.
(iii) AR − MR Method.
(iv) TC − MC Method.
Ans: (ii) MR − MC Method.
8. When MC = MR, the firm:
(i) Must shut down.
(ii) Is in equilibrium.
(iii) Faces loss.
(iv) Increases cost.
Ans: (ii) Is in equilibrium.
9. When MR > MC, the producer should:
(i) Stop production.
(ii) Continue producing.
(iii) Decrease output.
(iv) Increase price.
Ans: (ii) Continue producing.
10. Which condition ensures equilibrium?
(i) MR < MC after MR = MC.
(ii) TR = 0.
(iii) Profit is zero.
(iv) TC is maximum.
Ans: (i) MR < MC after MR = MC.
11. Assertion (A): A producer is in equilibrium when marginal cost equals marginal revenue.
Reason (R): At the point of equilibrium, the firm maximizes its profit by ensuring that the cost of producing one more unit is equal to the revenue generated from it.
(i) Both A and R are true, and R is the correct explanation of A.
(ii) Both A and R are true, but R is not the correct explanation of A.
(iii) A is true, but R is false.
(iv) A is false, but R is true.
Ans: (i) Both A and R are true, and R is the correct explanation of A.
12. When MC > MR beyond equilibrium, the producer should:
(i) Continue producing.
(ii) Stop production.
(iii) Reduce output.
(iv) Increase MC.
Ans: (iii) Reduce output.
13. In equilibrium, profit is:
(i) Minimum.
(ii) Negative.
(iii) Zero.
(iv) Maximum.
Ans: (iv) Maximum.
14. Assertion (A): A firm continues producing more units as long as marginal revenue exceeds marginal cost.
Reason (R): When MR > MC, producing additional units adds to total profit, pushing the firm away from equilibrium.
(i) Both A and R are true, and R is the correct explanation of A.
(ii) Both A and R are true, but R is not the correct explanation of A.
(iii) A is true, but R is false.
(iv) A is false, but R is true.
Ans: (iii) A is true, but R is false.
15. Price line is represented by:
(i) TR curve.
(ii) MC curve.
(iii) MR curve.
(iv) AR curve.
Ans: (iv) AR curve.
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