Costs , Supply & Perfect Competition Mcqs

1.

For a competitive firm, its short run supply curve is __ and its long run supply curve is _?

A. SMC, LMC

B. SMC above SAVC, LMC above LAC

C. SMC below SAVC, LMC above LAC

D. SMC below SAVC, LMC bellow LAC

Answer & Solution Discuss in Board

2.

In the short run a firm will produce zero output if ?

A. price is greater than short run average total cost

B. price is between short run average total cost and short run average variable cost

C. price is less than short run average variable cost

D. profit is zero

Answer & Solution Discuss in Board

3.

Short run average total costs are equals to the sum of and _?

A. Short run opportunity costs, profit

B. Short run variable costs, profit

C. Short run average variable costs, profit

D. Short run average variable costs, profit run average fixed costs

Answer & Solution Discuss in Board

4.

When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

A. greater than average cost, greater than average cost

B. less than average cost, greater than average cost

C. less than average cost, less than average cost

D. greater than average cost, less than average cost

Answer & Solution Discuss in Board

5.

If a long run average cost curve is falling form left to right this is an example of ?

A. increasing returns to scale

B. decreasing returns to scale

C. constant returns to scale

D. the minimum efficient scale

Answer & Solution Discuss in Board

6.

In monopolistic competition ?

A. There are few sellers

B. There are few buyers

C. There is one seller

D. There are many sellers

Answer & Solution Discuss in Board

7.

If a firm takes over a competitor then, according to porter’s 5 forces model ?

A. Buyer power is higher

B. Supplier power is higher

C. Substitute threat is higher

D. Rivalry is lower

Answer & Solution Discuss in Board

8.

In monopolistic competition of firms are making abnormal profit other firms will enter and ?

A. The marginal cost will shift outwards

B. the demand curve will shift inwards

C. The average cost will shift downwards

D. The average variable cost will increase

Answer & Solution Discuss in Board

9.

Which of the following is not one of the four Ps in marketing ?

A. Product

B. Price

C. Place

D. Presence

Answer & Solution Discuss in Board

10.

In monopolistic competition ?

A. Demand is perfectly elastic

B. Products are homogeneous

C. Marginal revenue = price

D. The marginal revenue is below the demand curve and diverges

Answer & Solution Discuss in Board

Practice MCQ Questions and answers on Costs , Supply & Perfect Competition Mcqs

1. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?

Answer & Solution

2. In the short run a firm will produce zero output if ?

Answer & Solution

3. Short run average total costs are equals to the sum of ____ and _____?

Answer & Solution

4. When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

Answer & Solution

5. If a long run average cost curve is falling form left to right this is an example of ?

Answer & Solution

6. In monopolistic competition ?

Answer & Solution

7. If a firm takes over a competitor then, according to porter’s 5 forces model ?

Answer & Solution

8. In monopolistic competition of firms are making abnormal profit other firms will enter and ?

Answer & Solution

9. Which of the following is not one of the four Ps in marketing ?

Answer & Solution

10. In monopolistic competition ?

Answer & Solution

Read More Section(Economics Mcqs)

1.

For a competitive firm, its short run supply curve is __ and its long run supply curve is _?

2.

In the short run a firm will produce zero output if ?

3.

Short run average total costs are equals to the sum of and _?

4.

When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

5.

If a long run average cost curve is falling form left to right this is an example of ?

6.

In monopolistic competition ?

7.

If a firm takes over a competitor then, according to porter’s 5 forces model ?

8.

In monopolistic competition of firms are making abnormal profit other firms will enter and ?

9.

Which of the following is not one of the four Ps in marketing ?

10.

In monopolistic competition ?