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Economics MCQ Class 11 Chapter 7

1. In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
(a) Average
(b) Total
(c) Variable
(d) Marginal

2. In perfect competition, a firm earns profit when ________ exceeds the _________.
(a) Total revenue, total fixed cost
(b) Marginal cost, marginal revenue
(c) Average revenue, average cost
(d) Total cost, total revenue

3. If all units are sold at same price how will it affect AR and MR?
(a) AR > MR
(b) AR = MR
(c) AR + MR = 0
(d) AR < MR

4. Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
(a) Monopolistic competition
(b) Monopoly
(c) Oligopoly
(d) Perfect competition

5. In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in ________.
(a) Reduction in supply
(b) No change in price
(c) Fall in price
(d) Rise in price

6. What is price line ?
(a) The demand curve
(b) The AR curve
(c) The MR curve
(d) The TR curve

7. The product of AR and price at every unit sold is the firm’s ______.
(a) TR
(b) TVC
(c) MR
(d) AR

8. Can MR be negative or zero.
(a) Yes
(b) Can’t say
(c) No
(d) Only negative but not zero

9. Can TR be a horizontal Straight line?
(a) May be
(b) Can’t say
(c) Yes
(d) No

10. The revenue of a firm per unit sold is its ______.
(a) MR
(b) AR
(c) TR
(d) TC

11. The concept of supply curve is relevant only for?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

12. In perfect competition, when the marginal revenue and marginal cost are equal, profit is?
(a) Maximum
(b) Zero
(c) Negative
(d) Average

13. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
(a) Average revenue
(b) Average cost
(c) Marginal revenue
(d) Marginal cost

14. Which of the following is an example of perfect competition?
(a) Agriculture
(b) Banking sector
(c) Car manufacturing
(d) Railways

15. In perfect competition, in the long run, ________.
(a) There are large profits for the firm
(b) There is no profit and no loss for the firm
(c) There are negligible profits for the firm
(d) There are large losses for the firm

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