Micro Economics MCQ (GK Set-1) with Answers

The market supply curve represents the individual supply curves of all firms which produce the product added together

The market supply curve may shift if there is a change in the behaviour of some firms which produce the product

The market supply curve may shift if there is change in the price of the product

The market supply curve may shift if there is a change in the number of firms which supply the product

The firm will sell its product at the going market price

The demand curve faced by the firm is downward sloping

The demand curve faced by the firm is horizontal even though the market demand curve is downward sloping

The firm would sell nothing if it set a higher price than the market price

The demand curve, average revenue curve, and marginal revenue curve

The demand curve and the average revenue curve, but not the marginal revenue curve

The demand curve and marginal revenue curve, but not the average revenue curve

The average revenue curve and the marginal revenue curve, but not the demand curve

Its marginal revenue and marginal cost curves must intersect at an output of 100 per day

If it increased its output to 101, then its revenue would rise by less than its costs

If it decreased its output to 99, then its revenue would fall by more than its costs

It must be earning the highest total revenue that it could earn

Its profit per unit of output will equal the gap between its AR curve and its SAC curve at an output of 100 a day

Its average fixed cost for each unit of output will equal the gap between its SAC and AVC curves at an output of 100 a day

Its total revenue will equal its AR at an output of 100 a day multiplied by 100

Its total cost will equal its AVC at an output of 100 a day multiplied by 100