The basic condition of firm’s equilibrium is:
  • MC = MR
  • MR = TR
  • MR = AR
  • AC = AR
In final equilibrium of firm:
  • MC cuts MR from above
  • MC cuts MR from below
  • Both (a) and (b) are
  • None of the above is true
For every market, which condition has to be fulfilled for firm’s equilibrium ?
  • AR = MC
  • MR = MC
  • MC should cut MR from below
  • Both (b) and (c)
Which is a method of producer’s equilibrium ?
  • TR and TC Method
  • MR and MC Method
  • Both (a) and (b)
  • None of the above
For a firm’s equilibrium:
  • MR = MC
  • MR > MC
  • MR < MC
  • MR = MC = 0
On which assumption, the law of supply depends ?
  • There should be no change in income levels of buyers and sellers in the market.
  • Prices of factors of production remain stable
  • Technological level remains constant
  • All the above
If other things being same, what does the positive relationship between price and supply quantity signify ?
  • Law of Demand
  • Elasticity of Supply
  • Law of Supply
  • Supply Function
The reason of decrease in supply is:
  • Increase in Production Cost
  • Increase in Price of Substitutes
  • Fall in number of Firms in the Industry
  • All the above
The figure given below shows:
  • Extension in Supply
  • Contraction in Supply
  • Elasticity of supply
  • Elasticity of demand
The quantity of a goods which the seller is ready to sell in the market at fixed price and time is called ?
  • Supply
  • Demand
  • Elasticity of supply
  • Elasticity of Demand
Supply is associated with:
  • A Time Period
  • Price
  • Both (a) and (b)
  • None of the above
Determinating factor of supply of goods is:
  • Price of Goods
  • Price of Related Goods
  • Price of Factor of Production
  • All the above
Which of the following function shows the laws of supply ?
  • S = f(P)
  • S = f(a/p)
  • S = f(Q)
  • None of the above
Following figure shows :
  • Perfectly Elastic Supply
  • Perfectly Inelastic Supply
  • Elastic Supply
  • Inelastic Supply
Following figure shows :
MCQ Questions for Class 11 Economics Chapter 3 Production and Costs with Answers 4
  • Perfectly Elastic Supply

  • Perfectly Inelastic Supply

  • Less Elastic Supply
  • Unit Elastic Supply
If the price of goods rises by 60% but supply increases by only 5%, the supply of goods will be:
  • Highly Elastic
  • Elastic
  • Inelastic
  • Perfectly Inelastic
The elasticity of a straight line supply curve originating from the centre of origin is:
  • Less than unity,
  • greater than unity
  • equal to unity
  • equal to zero
When supply increases more with a result of small increase in price, the nature of supply will be :
  • Elastic
  • Inelastic
  • Perfectly Elastic
  • Perfectly Inelastic
When the proportionate change in the supply of goods is more than the proportionate change in its price, the elasticity of supply will be:
  • Less than Unit
  • Equal to Unit
  • Greater than Unit
  • Infinite
If the price of the goods rises by 60% and supply increases by only 5%, the supply of goods will be :
  • Highly Elastic
  • Elastic
  • Inelastic
  • Perfectly Inelastic
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