CA FOUNDATION ELITE

Which of the following Competition is characterized by many sellers who are selling identical products to many buyers?

• Perfect Competition

• Monopolistic Competition

• Monopoly

• Oligopoly

Average revenue is the revenue earned __________.

• per unit of output

• per unit of input

• different units of input

• different units of output

If a seller obtains ₹ 3,000 after selling 50 units and ₹ 3,100 after selling 52 units, then marginal revenue will be:

• ₹ 59.62

• ₹ 50

• ₹ 60

• ₹ 59.80

When the price of a commodity is ₹ 20, the quantity demanded is 9 units and when its price is ₹ 19, the Quantity demanded is 10 units. Based on this information what will be the marginal revenue resulting from an increase in output from 9 units to 10 units.

• 220

• 19

• 10

• 01

According to Behavioural Prin-ciples.

• A firm should not produce at all if its total variable costs are not met.

• A firm will be making maximum profits by expending output to the level where marginal revenue is equal to marginal cost.

• both

• none

With a given supply curve, a decrease in demand causes __________.

• An overall decrease in price but an increase in equilibrium quantity

• An overall increase in price but a decrease in equilibrium quantity.

• An overall decrease in price and a decrease in equilibrium quantity.

• No change in overall price but a reduction in equilibrium quantity.

Which of the following is not an essential condition of pure competition?

• Large number of buyers and sellers

• Homogeneous product

• Freedom of entry

• Absence of transport cost

In case of perfect Competition, the industry is in equilibrium, when __________.

• There is enough demand of products in the market.

• There is enough supply of products in the market.

• Total output of the industry is equal to the total demand.

• Total output is less than the quantity demanded.

Which is the first order condition for the profit of a firm to be maximum?

• AC = MR

• MC = MR

• MR = AR

• AC = AR

If a perfectly competitive firms earns super normal profits then __________.

• AR > MR

• AR < MR

• AR = MR

• none