A rational consumer is a person who?
  • Has perfect knowledge of the market
  • Is not influenced by persuasive advertising
  • Behaves at all times, other things being equal, in a judicious manner
  • Knows the prices of goods in different market and buys the cheapest
In which of the following types of market structures, are resources, assumed to be mobile?
  • Oligopoly
  • Perfect competition
  • Monopolistic competition
  • Monopoly
At producer’s equilibrium when MR = MC, the firm earns only
  • Abnormal loss
  • Abnormal profit
  • Normal Profit
  • Normal loss
Beyond producer’s equilibrium when MR
  • Abnormal profit
  • Normal loss
  • Abnormal loss
  • Normal Profit
Before producer’s equilibrium when MR > MC, the firm earns only
  • Normal Profit
  • Normal loss
  • Abnormal loss
  • Abnormal profit
A producer’s equilibrium is a situation when
  • AR = MR
  • MR = MC
  • AR = AC
  • TR = TC
The elasticity at a point on a straight line supply curve passing through the origin will be
  • 3. 0
  • 1. 0
  • 4. 0
  • 2. 0
The elasticity at a point on a straight-line supply curve passing through the origin making an angle of 45° will be
  • 4. 0
  • 2. 0
  • 3. 0
  • 1. 0
Under perfect competition the number of firms
  • Is about 10
  • Are many but limited
  • Is large
  • Is limited
When ___________, the firms are earning just normal profit:
  • AC = AR
  • MC = AC
  • AR = MR
  • MC = MR
Which of the following is the condition for equilibrium of a firm?
  • MC curve must cut MR curve from above
  • MR = MC
  • None of above
  • Both of these
In perfect competition, since the firm is a price taker, the ________ curve is straight line
  • Total cost
  • Marginal cost
  • Total revenue
  • Marginal revenue
Other name by which average revenue curve known:
  • Indifference curve
  • Profit curve
  • Average cost curve
  • Demand curve
Marginal revenue in any competitive situation is?
  • TR
  • T
  • R
  • None of the above
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