Determination of equilibrium price and output under perfect competition MCQs Class 12 Economics are covered in this Article. Determination of equilibrium price and output under perfect competition MCQs Class 12 MCQ Test contains 25 questions. These ICSE or ISC Microeconomics Class 12 MCQ have been made for Class 12 students to help check the concept you have learnt from detailed classroom sessions and application of your knowledge.
Determination of equilibrium price and output under perfect competition MCQs Class 12
1. Under _______ no single firm or single consumer can influence the market price. (Fill in the blank with correct alternative)
a) Monopoly
b) Monopolistic competition
c) Perfect competition
d) None of the above
Answer
Answer: C
2. Under perfect competition price is determined by ,( choose the correct alternative)
a) By collective action of all the firms through supply curve
b) By collective action of all the consumers through demand curve
c) By comparison between Monopoly and perfect competition
d) Both (a) and (b)
Answer
Answer: D
3. In a short run equilibrium is decided where total market demand is equal to total market supply.( True/False )
Answer
Answer: TRUE
4. Excess supply______ the price. ( Choose the correct alternative)
a) Pulls down
b) Pushes up
c) Doesn’t influence
d) None of the above
Answer
Answer: A
5. At equilibrium, there is _____. ( Fill in the blank with correct alternative)
a) No excess demand
b) No excess supply
c) Both (a) and (b)
d) None of the above
Answer
Answer: C
6. A firm under perfect competition is ( choose the correct alternative)
a) Price maker
b) Price taker
c) Price influencer
d) Price settler
Answer
Answer: B
7. The individual firm in perfect competition is assumed to face a perfectly elastic demand curve.(True/False)
Answer
Answer: TRUE
8. Perfectly elastic demand curve of perfect competition implies that the firm can sell an infinite amount at a given time.
(True/False)
Answer
Answer: FALSE
9. The price taker firm sells at ____.( Fill in the blank with correct option)
a) Fixed price
b) Pre- determined price
c) Market price
d) None of the above
Answer
Answer: C
10. Which of the following statements given below are correct. ( Choose the correct alternative)
a) Price = Average revenue
b) Price = Marginal revenue
c) Average revenue = Marginal revenue
d) All of the above
Answer
Answer: D
Determination of equilibrium price and output under perfect competition MCQs Class 12
11.The short run equilibrium of the firm can be illustrated by; ( choose the correct alternative)
a) Combining the short run curve with the demand curve
b) Amount of output produced
c) Profit maximization
d) None of the above
Answer
Answer: A
12. The firm is output-adjuster under perfect competition (True/False)
Answer
Answer: TRUE
13. In order to determine profit maximization output, the firm meet which of the following conditions.( Choose the correct alternative)
a) SMC = MR
b) AR </> SAC
c) Both (a) and (b)
d) None of the above
Answer
Answer: C
14. Which of the following statements are true, in regards to a firm under perfect competition maximizing its profit. ( Choose the correct alternative)
a) The firm may be earning supernormal profit
b) The firm maybe incurring losses
c) The firm maybe earning normal profit
d) All of the above
Answer
Answer: D
15. Which of the following statements shows that the firm is earning supernormal profit. ( Choose the correct alternative)
a) AR > SAC
b) AR= SAC
c) AR<SAC
d) None of the above
Answer
Answer: A
16. If AR<SAC, then the firm is gaining profit.(True/False).
Answer
Answer: FALSE
17. ________ shows that the firm is earning normal profit.( Fill in the blank with correct alternative)
a) AR > SAC
b) AR < SAC
c) AR = SAC
d) None of the above
Answer
Answer: C
18. SMC curve cuts the MR curve from ______( Fill in the blank with correct alternative)
a) Below
b) Above
c) Left side
d) Right side
Answer
Answer: A
19. If the price exceeds AVC, then the firm continues to produce.(True/False)
Answer
Answer: TRUE
20. The ________ of a firm shows what various quantities of a commodity the firm is willing to supply at different prices.( Fill in the blank with correct alternative)
a) The demand curve
b) The profit maximization
c) The supply curve
d) None of the above
Answer
Answer: C
Determination of equilibrium price and output under perfect competition MCQs Class 12
21. The quantity which a firm is willing to supply is determined at ( choose the correct alternative)
a) SMC = MR
b) SMC = AR
c) SMC = Price
d) All of the above
Answer
Answer: D
22. The point where SMC curve cuts the minimum point of SAC, is known as_______.( Fill in the blank with correct alternative)
a) Shut down point
b) Break even point
c) Profit point
d) None of the above
Answer
Answer: B
23. Break even point is the point where a firm covers its cost,i.e. AR=AC
(True/False).
Answer
Answer: TRUE
24. Which of the following is a Situation of no profit no loss. ( Choose the correct alternative)
a) Shut down point
b) Profit point
c) Break even point
d) All of the above
Answer
Answer: C
25. The part of the short run MC curve which lies above the minimum point of AVC curve is the_________ of the firm in the short run . ( Fill in the blank with the correct alternative).
a) Break even point
b) Shut down point
c) Demand curve
d) Supply curve
Answer
Answer: D
Economics Class 12 ISC MCQs – Term 1
- Demand and Law of Demand MCQ Class 12
- Theory of Consumer Behaviour Class 12 MCQ
- Elasticity of Demand
- Supply – Law of Supply and Price Elasticity of Supply
- Market Mechanism
- Law of Returns
- Cost and Revenue Analysis
- Forms of Market
- Producer’s Equilibrium
- Determination of Equilibrium Price and Output under Perfect Competition