Question:

The short-run supply curve of a perfectly competitive firm

A.

is equal to that portion of the short-run marginal cost curve that is above the average variable cost curve

B.

is equal to that portion of the short-run marginal cost curve that is above the average total cost curve

C.

is equal to that portion of the short-run average total cost curve that is above the average variable cost curve

D.

None of the above is correct

Answer» a. is equal to that portion of the short-run marginal cost curve that is above the average variable cost curve

Question:

‘Stagflation’ is a situation where the economy faces

A.

Inflation

B.

Stagnation

C.

Inflation as well as stagnation

D.

None of the above

Answer» b. Stagnation

Question:

If price is greater than average cost, in the short-run, thecompetitive firm can earn

A.

Normal profit

B.

Super normal profit

C.

Loss

D.

All of the above

Answer» b. Super normal profit

Question:

The demand curve of a firm under perfect competition is :

A.

Inelastic

B.

Perfectly inelastic

C.

Infinitely elastic

D.

Unitary elastic

Answer» c. Infinitely elastic

Question:

Which is the slowest inflation?

A.

Walking inflation

B.

running inflation

C.

Creeping inflation

D.

moderate inflation

Answer» c. Creeping inflation

Question:

Monopolist maximizes profit at the point where

A.

MC = AC

B.

MC = MR

C.

AC = AR

D.

MR = AR

Answer» b. MC = MR

Question:

Demand curve of a firm under monopolistic competition is

A.

Parallel to X axis

B.

Parallel to Y axis

C.

Downward slopping

D.

Upward slopping

Answer» c. Downward slopping

Question:

Under pure monopoly, there will be

A.

No distinction between firm and industry

B.

One firm no industry

C.

No firm one industry

D.

Very few firms

Answer» a. No distinction between firm and industry

Question:

The marker structure which have very large number of sellers selling Identicalproducts is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» a. Perfect competition

Question:

The supply curve for the monopolist

A.

does not exist

B.

is represented by the marginal cost curve above the average total cost curve

C.

is represented by the marginal cost curve above the average variable cost curve

D.

is represented by the marginal cost curve above the average cost curve

Answer» a. does not exist