CUET Economics Micro > Forms of Market PYQs

Which one of the following fulfills for supply curve of a firm under perfectly competitive market in the long run?

Which of the following condtion does not exist in a perfectly competitive market?

Suppose the unit tax imposed by the government is Rs 2. If the firm produces and sells 10 units of goods, the total tax that the firm must pay to the government is Rs..............

The minimum point of the AVC in the short run and the minimum point of the LRAC curve is known as:

Which of the following combinations are correct about perfectly competitive market? A. Large number of buyers and sellers. B. Heterogenous product. C. Free entry and exit. D. Price is equal to marginal cost. Choose the correct answer from the options given below:

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:

In a perfectly competitive market firms can enter and exit freely from the market, then the equilibrium price in this condition is always equal to?

Choose the correct option(s) with respect to free entry and exit assumption of a perfectly competitive market. (A) At equilibrium, no firm earns supernormal profit. (B) As new firms enter the market, the supply curve shifts leftward. (C) Equilibrium price will be equal to the minimum average cost. (D) At equilibrium, no firm incurs losses by remaining in production. Choose the correct answer from the options given below:

Identify the correct statements from the following in the context of normal profit and break-even point (BEP). (A) BEP is the point at which a firm earns only normal profit. (B) A perfectly competitive firm earns normal profit in long run. (C) Profit level that keeps a firm in the existing business is called super-normal profit. (D) Profit level that keeps a firm in the existing business is called normal profit. Choose the correct answer from the options given below:

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

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:

When the price of a ball is Rs 10 then 200 cricket balls are produced by the firm in the market. When the price of a ball rises to Rs 30 then 1000 cricket balls are produced in aggregate by the firm in the market. What will be the value of Price elasticity of supply?

If there is a positive level of output at which a firm's profit is maximized in the long run, three conditions must hold at that output level are: A. P is equal to LRMC B. P is less than LRAC C. LRMC is non - decreasing D. P is greater than or equal to the minimum LRAC Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Price-takers | (I) Break-even point. | | (B) Price less than minimum point of AVC curve | (II) Normal profit. | | (C) A firm earns normal profit | (III) Perfectly Competitive Market. | | (D) A firm covers the explicit costs and opportunity costs | (IV) Shut down point. | Choose the correct answer from the options given below:

Suppose the market for cricket balls is perfectly competitive. When the price of a cricket ball is Rs 20, let us assume that 400 cricket balls are supplied by the firms in the market. When the price of a cricket ball rises to Rs 60, let us assume that 2,000 cricket balls are supplied in aggregate by the firms in the market. What will be the value of price elasticity of supply?

Match List-I with List-II | List-I | List-II | |---|---| | (A) Total Revenue (TR) | (I) TR /quantity (q) | | (B) Average Revenue (AR) | (II) ΔTR/Δq | | (C) Marginal Revenue (MR) | (III) TR-TC | | (D) Profit (π) | (IV) price × quantity | Choose the correct answer from the options given below:

One has to specify the market environment in which a firm functions. Identify the features of a perfectly competitive market: (A) The market consists of a large number of buyers and sellers (B) Each firm produces and sells a heterogeneous product. (C) Entry into the market as well as exit from the market are free for firms. (D) Perfect Information. Choose the correct answer from the options given below:

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 (C) A unit tax is that tax which is imposes on per unit sale of output. (D) suppose the government place a unit tax of Rs,t Choose the correct answer from the options given below:

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. (C) BEP is possible both in long run and short run. (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:

The point of minimum average cost at which the supply curve cuts the long run average cost (LRAC) curve is called ----------------- of a firm.

Under Perfect Competition, Large number of buyers and sellers implies:

Which of the following condition must be satisfied for profit maximization under perfect competition for the Short Run (SR) and for the Long Run (LR) respectively? Where P = Price, AVC = Average variable cost, AFC = Average fixed cost, AC = Average cost.

Which of the following condition is satisfied for a firm to maximise it's profit in the short run under perfect competition? Where, P = Price, AC = Average cost, MC = Marginal Cost.

Arrange the given statements in chronological order stating the implications of free entry and exit assumptions in a equilibrium market. (A) Supply curve shifts rightward, however demand remains unchanged. (B) At the prevailing market price, each firm is earning a supernormal profit and will attract some new firms. (C) Market prices fall, and supernormal profits are eventually wiped out. (D) All firms in the market are earning normal profit, no more firms will have incentive to enter. Choose the correct answer from the options given below:

A perfectly competitive market in an economy is categorized by the following features. (A) Firms are price-takers. (B) Average revenue is equal to market price. (C) Market is perfectly inelastic. (D) Marginal revenue is equal to market price. Choose the correct answer from the options given below:

Identify the incorrect statement regarding price flooring:

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

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:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Perfect Competition | (I) A typical characteristic of perfect competition. | | (B) Perfectly elastic demand curve | (II) An individual firm is a price taker. | | (C) Degree of price control under perfect competition | (III) The firm can sell any amount of its output at the prevailing price. | | (D) Freedom of entry and exit | (IV) No control over price. | Choose the correct answer from the options given below:

What is the shape of Average Revenue (AR) curve under perfect competition?

Select the INCORRECT feature of the market with respect to perfect competition. 1. The market consists of a large number of buyers and sellers. 2. Entry into the market as well as exit from the market are free for firms. 3. Buyers are price makers. 4. There is perfect knowledge.

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. (C) Equilibrium price is established. (D) Short-run profit attracts new firms. Choose the correct answer from the options given below:

Which of the following are features of a perfect competitive market? (A) Free entry and exit of firms. (B) Huge selling cost. (C) perfectly elastic demand curve. (D) perfect market knowledge among buyers. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Control Price | (I) Set below the equilibrium price | | (B) Floor Price | (II) Fixed by the government for the labourers | | (C) Minimum Wage Legislation | (III) Set above the equilibrium price | | (D) Market Equilibrium | (IV) when demand and supply curve intersect. | Choose the correct answer from the options given below:

Identify the incorrect option from the following related to a perfectly competitive market.

In a perfectly competitive market choose the correct statement from the following. (A) Equilibrium occurs where market demand equals market supply. (B) Each firm employs labour upto the point where the marginal revenue of labour equals the wage rate. (C) Equilibrium price and quantity are determined when there is large number of firms. (D) Equilibrium price is always equal to minimum average cost of the firms. Choose the correct answer from the options given below:

The demand curve that a firm faces in a perfectly competitive market is...........

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. (C) Large number of sellers and buyers. (D) Asymmetric Information. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Perfect Competition | (I) No change in equilibrium price | | (B) Increase in Demand= Decrease in Supply | (II) Price taking Behavior | | (C) Increase in Demand > Decrease in Supply | (III) Decrease in equilibrium price | | (D) Increase in Supply > Decrease in Demand | (IV) Increase in equilibrium price | Choose the correct answer from the options given below:

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:

The existence of a large number of buyers and sellers in the perfectly competitive market means?

When Government fix the minimum price of any commodity this move of government is known by:

Arrange the following money supply measures in chronological order. (A) Excess supply will prevail in the economy. (B) The tendency of prices to change to restore equilibrium. (C) Suppose market supply is greater than market demand at a given price. (D) Hence, the market is not in equilibrium. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Upper limit on price of goods & services | (I) Leads to excess supply. | | (B) Free entry and exit | (II) Equilibrium price = min AC of the firms. | | (C) Marginal revenue product of labor (MRP_L) | (III) Leads to excess demand. | | (D) Lower limit on price of goods & services | (IV) MR x MP_L. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (III), (B) - (II), (C) - (IV), (D) - (I) 3. (A) - (IV), (B) - (III), (C) - (II), (D) - (I) 4. (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

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 $Q_d = 180 - 2P$ $Q_{s1} = 15 + P$ $P = 15$ 1. 5 2. 6 3. 8 4. 9

For a price-taking firm, the market price is equal to marginal revenue and ......

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

Public goods, as distinct from private goods, are collectively consumed. Two important features of public goods are:

In a perfectly competitive market, the marginal revenue curve is?

In a particular country, there was a severe heatwave. Arrange the following in the sequence of order in context of the market of ice-creams. (A) Rise in the price of ice cream. (B) Supply will remain the same. (C) Competition among the buyers of ice cream inceaseees. (D) The demand for ice cream increases. Choose the correct answer from the options given below:

The total revenue of a firm is increasing at a constant rate. Which of the following is true about this firm?

The government-imposed lower limit on the price that may be charged for a particular good or service. What this lower limit is called ?

Perfect information implies that all buyers and all sellers are completely informed about the price, quality and other relevant details about the product, as well as the market. These features result in the single most distinguishing characteristic of perfect competition, that is...

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:

Let us consider the example of a market consisting of identical farms producing the same quality of wheat. Suppose the market demand curve and the market supply curve for wheat are given by: qᵈ = 200 - p and qˢ = 120 + p. What is the equilibrium price?

In perfectly competitive market, the demand curve of a firm is?

Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run?

Identify the correct sequence due to which firms under perfect competition earn normal profits in the long run. (A) The firms are earning less than normal profit at the prevailing price. (B) The profits of each firm will increase to the level of normal profit. (C) No more firm will want to leave, since they will be earning normal profit here. (D) Some firms will exit, which will lead to an increase in price. Choose the correct answer from the options given below:

Suppose the Income of consumers in a market increase. How will this effect the equilibrium price of the commodity, assuming that it is a normal good? (A) There is excess demand at the existing price. (B) Rising price leads to contraction in demand and expansion in supply and a new equilibrium price is attained, which is higher than the initial price. (C) The demand curve shifts rightward. (D) There is upward pressure on the price and price starts rising. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Excess demand | (I) Supernormal profits | | (B) Excess supply | (II) Perfect competition | | (C) Entry of new firms in the market | (III) Price tends to fall | | (D) Price taker | (IV) Price tends to rise | Choose the correct answer from the options given below:

Which of the following is not a feature of perfect competition?

In the perfectly competitive market, if 10 packets of bread are sold at the price of Rs. 25 per packet, what will be the total revenue of a bread manufacturer? 1. Rs. 25 2. Rs. 250 3. Rs. 0.4 4. Rs. 2.5

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms (A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market. (B) Some new firms will enter the market (C) At the prevailing market price, each firm is earning supernormal profit. (D) Demand remains unchanged but the market supply curve shifts rightward

Arrange the following statements related to negative externalities in correct sequence (A) There is an oil refinery which refines crude petroleum and sells it in the market (B) Pollution harms well-being and also kills fish or other organisms (C) Production the refinery may also be polluting the nearby river (D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities

What are the key components of a perfectly competitive market? (A) Large number of buyers and sellers. (B) Homogeneous product. (C) Free Entry and exit. (D) Asymmetric Information. Choose the correct answer from the options given below:

Price ceiling is one concept which provides safeguard to______

Which of the following is an example of floor price?

With the shifting demand curve leftward, arrange the following statement in sequential order. (A) At any given price, demand is less. (B) Excess supply will be there. (C) Some producers will decrease the prices of commodity. (D) At new equilibrium, quantity and price will be less. Choose the correct answer from the options given below: