Micro

Forms of Market

Medium

A positive level of output at which a firm's profit is maximised must hold some conditions, Identify those conditions from the following:

A. The price must equal to marginal cost.

B. Marginal cost must be non-decreasing.

C. Price must be greater than or equal to the average variable cost.

D. The price should less than marginal cost.

Select the correct option from the following:

A, B and C only

A and B only

A, C and D only

B, C and D only

✅ Correct Option: 1

For a perfectly competitive firm, profit maximisation at a positive output requires: price equals marginal cost, $P = MC$ (A); MC must be non-decreasing at that output (B); and in the short run price must be at least equal to average variable cost, $P \geq AVC$ (C). Price less than MC (D) violates the first condition. Hence A, B and C only.

2026: 12 May Shift 1

Choose the correct options from the following in respect of Break-even point(BEP) of a firm-

(A) BEP is a point of minimum AVC where the SMC curve cuts the AVC curve.

(B) BEP is a point on the supply curve at which a firm earns only normal profit.

(D) BEP is the point of minimum average cost at which the supply curve cuts the LRAC curve.

Choose the correct answer from the options given below:

2026: 19 May Shift 2

Identify the correct statement regarding the supply of a given commodity.

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:

2026: 21 May Shift 2

Match the LIST-I with LIST-II

(SMC = Short run marginal cost, AVC = Average variable Cost, MR= Marginal Revenue)

	LIST-I		LIST-II
A.	Perfectly competitive Market	I.	Normal profit in the long run
B.	Point below where SMC curve cuts the AVC curve	II.	Break Even Point
C.	Supply curve cuts the SMC curve at minimum	III.	Shut Down Point
D.	MR is precisely the market price	IV.	Perfect Competition

Choose the correct answer from the options given below:

2025: 29 May Shift 1

Arrange the following steps of Market Equilibrium under perfect competition in the correct order.

(A) Excess of market demand over market supply will cause excess demand situation.

(B) Quantity demanded will fall and quantity supplied will rise.

(C) The market will move towards the point where the quantity that the firm wants to sell is equal to the quantity that the consumer wants to buy.

(D) The market price would tend to increase, due to competition among buyers.

Choose the correct answer from the options given below:

2025: 27 May Shift 2

In a perfectly competitive market, a firm produces and sells a certain amount of goods. Among the following what reflect the firm's profit?

Solution

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