11th Grade > Economics - 1
THE THEORY OF THE FIRM MCQs
Total Questions : 25
| Page 1 of 3 pages
Answer: Option A. -> MC
:
A
The slope of the TC curve = ΔTC/Δq
= MC
:
A
The slope of the TC curve = ΔTC/Δq
= MC
Answer: Option C. -> TFC
:
C
If we multiply the x and y coordinates of any point on the AFC curve, we get TFC since
AFC x q = TFC
:
C
If we multiply the x and y coordinates of any point on the AFC curve, we get TFC since
AFC x q = TFC
Answer: Option C. -> constant
:
C
For a firm operating in a perfectly competitive market, the slope of the TR curve is equal to the price and is constant.
:
C
For a firm operating in a perfectly competitive market, the slope of the TR curve is equal to the price and is constant.
Answer: Option B. -> Average total cost
:
B
The efficient scale of production is the quantity of output that minimizes the average total cost.
:
B
The efficient scale of production is the quantity of output that minimizes the average total cost.
Answer: Option B. -> 80
:
B
TP = sum of all MPs
=100+80+60 = 240
AP for three hours = TP/3
= 240/3 =80
:
B
TP = sum of all MPs
=100+80+60 = 240
AP for three hours = TP/3
= 240/3 =80
Answer: Option C. -> Rectangular hyperbola
:
C
Shape of the AFC curve is a rectangular hyperbola.
:
C
Shape of the AFC curve is a rectangular hyperbola.
Answer: Option D. -> AVC and SMC
:
D
For the first unit of output, SMC =AVC. Hence these two curves start from the same point.
:
D
For the first unit of output, SMC =AVC. Hence these two curves start from the same point.
Answer: Option A. -> Rs 10
:
A
Let the fixed cost be F and the variable cost per unit be v.
F +100 v = Rs 2000
F + 250 v = Rs 3500
On solving, we get F = 1000 =TFC and v = 10 = AVC
Now, AFC = TFC / 10 = 1000/100 = Rs 10
:
A
Let the fixed cost be F and the variable cost per unit be v.
F +100 v = Rs 2000
F + 250 v = Rs 3500
On solving, we get F = 1000 =TFC and v = 10 = AVC
Now, AFC = TFC / 10 = 1000/100 = Rs 10
Answer: Option A. -> (P−SAC)×q
:
A
The profit of a firm is given by (P−SAC)×q
:
A
The profit of a firm is given by (P−SAC)×q
Answer: Option D. -> 0
:
D
Slope of TFC curve = 0 since TFC is a constant. TFC curve is a straight line parallel to the x-axis.
:
D
Slope of TFC curve = 0 since TFC is a constant. TFC curve is a straight line parallel to the x-axis.
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