Economics MCQ Class 11 Chapter 7 | The Theory of the Firm under Perfect Competition | Economics Quiz for Class 11 and Other Competitive Exams

Economics MCQ Class 11 Chapter 7: Check the below NCERT MCQ Questions for Economics MCQ Class 11 Chapter 7 with Answers Pdf free download. Economics MCQ Class 11 Chapter 7 Questions for Economics with Answers were prepared based on the latest exam pattern. We have provided Economics MCQ Class 11 Chapter 7 with Answers to help students understand the concept very well.

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Economics MCQ Class 11 Chapter 7


1. In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
(a) Average
(b) Total
(c) Variable
(d) Marginal

View Answer

(a) Average


2. In perfect competition, a firm earns profit when ________ exceeds the _________.
(a) Total revenue, total fixed cost
(b) Marginal cost, marginal revenue
(c) Average revenue, average cost
(d) Total cost, total revenue

View Answer

(c) Average revenue, average cost


3. If all units are sold at same price how will it affect AR and MR?
(a) AR > MR
(b) AR = MR
(c) AR + MR = 0
(d) AR < MR

View Answer

(a) AR > MR


4. Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?
(a) Monopolistic competition
(b) Monopoly
(c) Oligopoly
(d) Perfect competition

View Answer

(d) Perfect competition


5. In perfect competition, in the long run, if a new firm enters the industry the supply curve shifts to the right resulting in ________.
(a) Reduction in supply
(b) No change in price
(c) Fall in price
(d) Rise in price

View Answer

(c) Fall in price


6. What is price line ?
(a) The demand curve
(b) The AR curve
(c) The MR curve
(d) The TR curve

View Answer

(c) The MR curve


7. The product of AR and price at every unit sold is the firm’s ______.
(a) TR
(b) TVC
(c) MR
(d) AR

View Answer

(a) TR


8. Can MR be negative or zero.
(a) Yes
(b) Can’t say
(c) No
(d) Only negative but not zero

View Answer

(a) Yes


9. Can TR be a horizontal Straight line?
(a) May be
(b) Can’t say
(c) Yes
(d) No

View Answer

(d) No


10. The revenue of a firm per unit sold is its ______.
(a) MR
(b) AR
(c) TR
(d) TC

View Answer

(b) AR


11. The concept of supply curve is relevant only for?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

View Answer

(c) Perfect competition


12. In perfect competition, when the marginal revenue and marginal cost are equal, profit is?
(a) Maximum
(b) Zero
(c) Negative
(d) Average

View Answer

(a) Maximum


13. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
(a) Average revenue
(b) Average cost
(c) Marginal revenue
(d) Marginal cost

View Answer

(c) Marginal revenue


14. Which of the following is an example of perfect competition?
(a) Agriculture
(b) Banking sector
(c) Car manufacturing
(d) Railways

View Answer

(a) Agriculture


15. In perfect competition, in the long run, ________.
(a) There are large profits for the firm
(b) There is no profit and no loss for the firm
(c) There are negligible profits for the firm
(d) There are large losses for the firm

View Answer

(b) There is no profit and no loss for the firm


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