Micro

Forms of Market

Medium

Which of the following is true about the relationship between Total Revenue (TR) and Marginal Revenue (MR) in a perfectly competitive market?

(A) Total Revenue will increase at a constant rate.

(B) Marginal Revenue is more than Average Revenue.

(C) Marginal Revenue remains constant throughout.

(D) Marginal Revenue is equal to Average Revenue.

Choose the correct answer from the options given b-elow:

(A), (B), (C) and (D)

(A), (B) and (D) only

(A), (C) and (D) only

(B), (C) and (D) only

✅ Correct Option: 3

Option 1 -> Includes statement (B) which is incorrect because in perfect competition MR = AR, not MR > AR.

Option 2 -> Includes statement (B) which is incorrect because in perfect competition MR = AR, not MR > AR.

Option 3 -> Correctly includes (A), (C), and (D). In perfect competition: TR increases at constant rate P; MR remains constant at P; and MR = AR = P.

Option 4 -> Includes statement (B) which is incorrect because in perfect competition MR = AR, not MR > AR.

Hence, Option 3: (A), (C) and (D) only -> In a perfectly competitive market, the firm is a price taker where Price = MR = AR. Statement (A) is true because TR = P × Q, so TR increases at a constant rate equal to the market price. Statement (C) is true because MR equals the constant market price. Statement (D) is true because both MR and AR equal the market price. Statement (B) is false because MR = AR, not MR > AR. -> correct

2025: 28 May Shift 1

What would be the equilibrium number of firms in a market of identical firms, when market demand function $(Q_d)$ , supply function of a single firm $(Q_s1)$ and equilibrium price (P) are given as

$Q_d = 180 - 2P$

$Q_{s1} = 15 + P$

$P = 15$

2025: 29 May Shift 1

Which of the following are features of the perfect competition market?

(A) Price taking behavior of firms.

(B) Restriction on entry and exit of firms.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Arrange the stages of price determination in a perfect competition market:

(A) Estimate the market demand and supply.

(B) Firms adjust production to maximize profit.

(D) Short-run profit attracts new firms.

Choose the correct answer from the options given below:

2025: 22 May Shift 1

Arrange a statement of market equilibrium when the demand curve shifts leftward:

(A). The shift indicates that at any price the quantity demanded is less than before.

(B). Some firms will reduce the price of their commodity so that they can sell their desired quantity.

(C). Excess supply will arise.

(D). At the new equilibrium, quantity and price will be less than before.

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Arrange the following in ascending order as impact of the unit tax on supply :

(A) After imposition of unit tax ,firm will supply less unit of output

(B) Firm's long run average cost and marginal cost increases by Rs.t

(D) suppose the government place a unit tax of Rs,t

Choose the correct answer from the options given below:

2025: 3 June Shift 1

In the context of perfect competition, which one of the following is not correct?

Solution

Related questions:

Keyboard Shortcuts

CUET Economics Past Year Questions (Topic-Wise)