NCERT Class 11 Economics MCQ Chapter 12 The Theory of the Firm under Perfect Competition Solutions to each chapter is provided in the list so that you can easily browse through different chapters NCERT Class 11 Economics MCQ Chapter 12 The Theory of the Firm under Perfect Competition Question Answer and select need one. NCERT Class 11 Economics MCQ Chapter 12 The Theory of the Firm under Perfect Competition Solutions Download PDF. NCERT Class 11 Introductory Microeconomics Multiple Choice Solutions.
NCERT Class 11 Economics MCQ Chapter 12 The Theory of the Firm under Perfect Competition
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. NCERT Class 11 Economics Objective Type Solutions are part of All Subject Solutions. Here we have given CBSE Class 11 Economics Multiple Choice Question and Answer, HS First Year Economics MCQ Solutions for All Chapters, You can practice these here.
The Theory of the Firm under Perfect Competition
Chapter: 12
PART – (B) INTRODUCTORY MICROECONOMICS
MCQ
1. A seller cannot influence the market price under:
(a) Perfect competition.
(b) Monopoly.
(c) Monopolistic competition.
(d) None of the above.
Ans: (a) Perfect competition.
2. The number of buyers and sellers in the industry are large, this implies that:
(a) Firm is a price taker.
(b) Firm is a price maker.
(c) Firms earn normal profits.
(d) All of these.
Ans: (a) Firm is a price taker.
3. 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.
4. Under perfect competition:
(a) AR = MR
(b) AR > MR
(c) AR < MR
(d) None of the above.
Ans: (a) AR = MR
5. What does an AR curve under a perfectly competitive market look like?
(a) Downward sloping.
(b) Straight line parallel to x-axis.
(c) Upward sloping.
(d) Straight line parallel to y-axis.
Ans. (b) Straight line parallel to x-axis.
6. Price of a commodity is:
(a) TR
(b) MR
(c) AR
(d) None of these.
Ans: (c) AR
7. 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.
8. Average Revenue(AR) is:
(a) Sum of total revenue and price.
(b) Total revenue per unit of inputs used.
(c) Total cost per unit produced.
(d) Total revenue per unit of output.
Ans: (d) Total revenue per unit of output.
9. 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.
10. 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
11. The marginal revenue becomes negative when:
(a) TR stops rising at an increasing rate.
(b) TR is constant and maximum.
(c) TR starts falling.
(d) TR starts rising.
Ans: (c) TR starts falling.
12. What happens to TR when MR is decreasing but remains negative?
(a) Decreases at an increasing rate.
(b) Increases.
(c) Decreases at a decreasing rate.
(d) Decreases.
Ans: (d) Decreases.
13. 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.
14. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be:
(a) Greater than Average Revenue.
(b) Less than Average Revenue.
(c) Equal to Average Revenue.
(d) Zero.
Ans: (c) Equal to Average Revenue.
15. 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.
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