CUET Economics: MicroForms of Market. Free, no login required.

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)

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

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

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

Choose the correct answer from the options given below:

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