Economics Practice MCQ Page 17
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1509 If ,at the current level of output,the firm's marginal revenue is less than its marginal cost,then firm should
- increase output .
- shut down .
- expand its capital stock.
- decrease output.
- keep output unchanged.
Question: 1511 If a profit-maximizing firm in a perfectly competitive industry produces 50 units of output at a price of $4 per unit ,then.
- fixed costs are no more than $200.
- variable costs are no more than $200.
- average total cost is less than $4.
- marginal cost is no more than $ 4.
- average variable cost equals $4.
Question: 1512 The marginal cost of producing four units in Table 1 is
- $14.
- $46.
- $11,50.
- $8.
- $7.
Question: 1513 If the price of the product in Table 1 is $14,then the firm will
- shut down .
- produce 4 units.
- produce 6 units.
- produce 8 units.
- produce 10 units.
Question: 1514 If the price of the product in Table 1 is $7, the firm will
- shut down.
- produce 4 units.
- produce 2 units.
- produce 6 units.
- produce 8 units.
Question: 1515 New firms will enter the industry in Table 1 in the long run if only if the price is
- greater than zero.
- greater than $5.
- greater than $7.75.
- greater than $11.
- greater than $15.
Question: 1516 If the industry in Table 1 is in long run equiliburium,then price is
- $7.75.
- less than $7.
- greater than $15.
- $11.
- impossible to determined from the data given.
Question: 1517 The supply curve of a competitive firm is
- the upward -sloping part of average variable cost curve.
- the marginal cost curve .
- the marginal cost curve above the average total cost curve.
- the upward-sloping part of the average total cost curve.
- the marginal cost curve above the average variable cost curve.
Question: 1522 The largest possible loss that will be suffered by a perfectly competitive firm in the long run is
- zero .
- total fixed costs.
- total variable costs.
- unlimited.
- the marginal cost of its output.
Question: 1523 Entry of new firms into a competitive market will shift
- the industry supply curve of the left.
- the supply curves of firms to the left.
- the demand curves faced by firms to the left.
- the industry supply to the right.
- the supply curves of firms to the right.
Question: 1524 In a constant-cost industry ,an increase in demand
- increase price in the short run but not in the long run.
- increases price in both the short run and long run.
- does not change price in both the short run or long run.
- increases output in the short run but not in the long run.
- does not change output in the short run or long run.
Question: 1525 The long -run supply curve of an increasing cost industry
- is horizontal.
- is the sum of the marginal cost curve of firms in the industry.
- slopes upward but is flatter than the short -run supply curve.
- is steeper than the short -run supply curve.
- is the sum of the upward -sloping part of firms long-run average cost curves.
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1509 . D
1511 . B
1512 . D
1513 . C
1514 . A
1515 . D
1516 . D
1517 . E
1522 . A
1523 . D
1524 . A
1525 . C
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