Costs , Supply & Perfect Competition Mcqs

1.

in long-run equilibrium in a competitive market, firms are operating at ?

A. the minimum of their average-total-cost curves

B. all of these answers are correct

C. their efficient scale

D. zero economic profit

E. intersection of marginal cost and marginal revenue

Answer & Solution Discuss in Board

2.

If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

A. perfectly inelastic

B. perfectly elastic

C. upward sloping

D. downward sloping

Answer & Solution Discuss in Board

3.

In the long-run some firms will exit the market if the price of the good offered for sale is less than ?

A. marginal revenue

B. marginal cost

C. average total cost

D. average revenue

Answer & Solution Discuss in Board

4.

A grocery store should close at night if the ?

A. variable costs of staying open are less than the total revenue due to staying open.

B. total costs of staying open are less than the total revenue due to staying open

C. variable costs of staying open are greater than the total revenue due to staying open

D. total costs of staying open are greater than the total revenue due to staying open

Answer & Solution Discuss in Board

5.

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

A. Upward-sloping portion of the average total cost curve

B. upward-sloping portion of the average variable cost curve

C. portion of the marginal cost curve that lies above the average total cost curve.

D. entire marginal cost curve.

E. portion of the marginal-cost curve that lies above the average variable cost curve

Answer & Solution Discuss in Board

6.

The competitive firm maximize profit when it produces output up to the point where ?

A. price equals average variable cost

B. marginal revenue equals average revenue

C. marginal cost equals total revenue

D. marginal cost equals marginal revenue

Answer & Solution Discuss in Board

7.

If a competitive firm doubles its output its total revenue ?

A. doubles.

B. more than double

C. less than doubles.

D. cannot be determined because the price of the good may rise or fall

Answer & Solution Discuss in Board

8.

Which of the following is not a characteristic of a competitive market ?

A. All of these answers are characteristic of a competitive market

B. The are many buyers and sellers in the market

C. The goods offered for sale are largely the same.

D. Firms generate small but positive economic profits in the long run

E. Firms can freely enter or exit the market

Answer & Solution Discuss in Board

9.

In the long run in perfect competition ?

A. price = average cost = marginal cost

B. price = average cost = total cost

C. price = marginal cost = total cost

D. Total revenue = Total variable cost

Answer & Solution Discuss in Board

10.

In perfect competition ?

A. A few firms dominate the industry

B. Firms are price makers

C. There are many buyers but few sellers

D. There are many buyers and sellers

Answer & Solution Discuss in Board

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

1. in long-run equilibrium in a competitive market, firms are operating at ?

Answer & Solution

2. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

Answer & Solution

3. In the long-run some firms will exit the market if the price of the good offered for sale is less than ?

Answer & Solution

4. A grocery store should close at night if the ?

Answer & Solution

5. In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

Answer & Solution

6. The competitive firm maximize profit when it produces output up to the point where ?

Answer & Solution

7. If a competitive firm doubles its output its total revenue ?

Answer & Solution

8. Which of the following is not a characteristic of a competitive market ?

Answer & Solution

9. In the long run in perfect competition ?

Answer & Solution

10. In perfect competition ?

Answer & Solution

Read More Section(Economics Mcqs)

1.

in long-run equilibrium in a competitive market, firms are operating at ?

2.

If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

3.

In the long-run some firms will exit the market if the price of the good offered for sale is less than ?

4.

A grocery store should close at night if the ?

5.

In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?

6.

The competitive firm maximize profit when it produces output up to the point where ?

7.

If a competitive firm doubles its output its total revenue ?

8.

Which of the following is not a characteristic of a competitive market ?

9.

In the long run in perfect competition ?

10.

In perfect competition ?