Classical

Business Economics - Business Economics Objective Type Questions

6:  

Under perfect competition a firm can produce with

A.

An optimum plant

B.

Identical products at low cost

C.

Maximum profit

D.

An optimum output

 
 

Option: A

Explanation :


7:  
A perfectly competitive industry becomes a monopoly with the same cost conditions, it will now sell
A.

A larger output at a higher price

B.

A larger output at the old price

C.

An unchanged output at a higher price

D.

A reduced output at a higher price

 
 

Option: D

Explanation :


8:  
Which of the following is true in a perfectly competitive market?
A.
Total revenue rises continuously at a constant rate.
B.
Average revenue is constant at all levels of output.
C.
Marginal revenue is constant at all levels of output.
D.

All of the above

 
 

Option: D

Explanation :


9:  

In imperfect competition marginal revenue falls at __ than the fall in average revenue.

A.

Half the rate

B.

Twice the rate

C.

Same rate

D.

None of the above

 
 

Option: B

Explanation :


10:  
A perfectly competitive firm will always expand output as long as
A.
Rising marginal cost is less than the average cost
B.
Rising marginal cost is less than the marginal revenue
C.

Rising marginal cost is less than price

D.

None of the above

 
 

Option: D

Explanation :




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  • This section contain multiple choice questions answers on business economics.
  • Business Economics mcq can also be used in the preparation of ugc net exams.
  • Business Economics objective type questions answers can be used to gain a credit score in various undergraduate and post graduate commerce courses like B com  and Mcom
  • These questions answers can also be used by management students for improving their knowledge in business economics.
  • These multiple choice questions answers can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge in Business Economics.
  • This section can be used for the preparation of quizzes by any commerce student.