Price Determination in Different Markets-Test 7

The following figures gives the cost of a firm

No. of units produced 10

Total variable cost 200

Total average cost 30

Total average fixed cost is

If a demand curve exhibits unit elasticity for all prices the MR curve

If AR curve is a falling straight line, MR curve will lie below it in such a way that any line drawn from a point from y-axis parallel to x-axis to meet the AR curve is intersected by the MR curve

The slope of a tangent to any point on the total revenue curve shows

The time period and elasticity of time are related

The LAC curve

At the shut-down point

In all forms of imperfect completion the average revenue curve facing the individual slopes

The real aim of production is

The supply curve for the short-run competitive firm is the same as

A rise in the price of a commodity will generally call forth a bigger supply and this will be brought about partly by existing firms expanding their output and partly by :

Under perfect competition a firm will be in equilibrium if

If the demand curve confronting an individual firm is perfectly elastic then

Efficient allocation of resources is likely to be achieved under

When the perfectly competitive firm and industry are both in long run equilibrium

In a competitive firm when AR = AC, then firm earns

By “normal profits”is meant

The change in TR resulting from the sale of the one unit more of output, means

Under the perfect competitions the transportation cost

The limit to the long-run growth of a firm under imperfectly competitive conditions is set by

With increasing returns to scale, the equilibrium in a market is incomplete. This is

In finding equilibrium position of a profit maximising firm, which technique is most convenient

In the case of consumer’s demand curve, determined the price but in the case of producer

(i) AR curve determined the price

(ii) AR curve determined the price and income

(iii) MR curve determined the price

(iv) MR curve and AR curve are determined the price

Under competitive conditions the industry will be in equilibrium

One would expect a firm to close down rather than continue producing in the short-period if

Under perfect competition, a firm will be in equilibrium when its AC is

Expanding output till the rising marginal cost is less than price, is the nature of

The competitive equilibrium leads to

If more firms enter a competitive industry the theory predicts that

A perfectly competitive firm will always expand output as long as