CBSE Class 11 Economics The Theory of the Firm under Perfect Competition Quiz 4

1. When ___________, the firms are earning just normal profit:

A AC = AR B MC = AC C AR = MR D MC = MR

2. Which of the following is the condition for equilibrium of a firm?

A MC curve must cut MR curve from above B MR = MC C None of above D Both of these

3. In perfect competition, since the firm is a price taker, the ________ curve is straight line

A Total cost B Marginal cost C Total revenue D Marginal revenue

4. Other name by which average revenue curve known:

A Indifference curve B Profit curve C Average cost curve D Demand curve