100 MCQS of Producer’s Equilibrium Microeconomics class 11
Looking for important MCQs of Producers Equilibrium chapter with answers and explanation of Microeconomics class 11 CBSE, ISC and other state Board.
Multiple Choice Questions of Producers equilirbrium chapter with answers of Microeconomics class 11
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Producer’s Equilbrium under MR – MC approach is achieved when:
a) MR = MC
b) MC > MR after the equality between MR and MC
c) Either a) or b)
d) Both a) and b)
Ans – d)
__ refers to a situation when a firm has no intention to expand or contract the output.
a) Producer’s Equilibrium
b) Market Equilibrium
c) Consumer’s Equilibrium
d) None of these
Ans – a)
Excess of receipts from sale of goods over expenditure incurred on producing them is termed as:
a) Average Revenue
b) Revenue
c) Profits
d) Marginal Revenue
Ans – c)
Producer is not at equilibrium when MC > MR because:
a) profits can be increased by producing more
b) Benefit is less than cost
c) Both a) and b)
d) None of these
Ans – b)
If MR is more than MC at a particular level of output, then producer will:
a) Reduce production
b) Increase production
c) Keep the production at current level
d) None of these
Ans – b)
Producer’s Equilibrium refers to stage of that output level when:
a) Firm earns maximum profits
b) Firm bears minimum losses
c) Firm has inclination to expand or contract the output
d) All of these
Ans – a), b)
In case of perfect competition, a firm is in equilibrium when:
a) MC = MR
b) MC cuts MR from below
c) MC is rising when it cuts MR
d) All of these
Ans – d)
The Profits of a firm diminishes when exceeds _ .
a) Marginal Revenue, Marginal Cost
b) Marginal Cost, Marginal Revenue
c) Marginal Revenue, Average Cost
d) Average Revenue, Average Cost
Ans – b)
If Marginal Cost = MC and Marginal Revenue = MR, then for achieving equilibrium output:
a) MC curve should cut MR curve from above
b) MC curve should cur MR curve from below
c) MC curve should not cut MR curve at all
d) MC curve should be tangent to MR curve
Ans – b)
