MCQ Bank
We can estimate cost functions of the firm by using which of the following method?
- A) Cost analysis
- B) Regression analysis
- C) Supply analysis
- D) Demand analysis
From given isoprofit function: $$QY\, = \,\Pi /b\, - \,a/b\,QX$$ slope of this function will be:
- A) b
- B) -a/b
- C) -b/a
- D) a
Which of the following will happen in case of increasing returns to scale?
- A) Increasing costs
- B) No costs
- C) Constant costs
- D) Decreasing costs
If optimal multi plant activity level is 20000 and optimal production per plant is 5000, the optimal number of plants will be:
- A) 4
- B) 2
- C) 3
- D) 5
A corner point is a spot in the feasible space, where
- A) X axis and constraint conditions intersect
- B) X axis, Y axis or constraint conditions intersect
- C) X axis and Y axis intersect
- D) Y axis and constraint conditions intersect
Under perfect competition, profit is maximized at the point where:
- A) Average cost = Average revenue
- B) Average cost = marginal revenue
- C) Marginal cost = Marginal revenue
- D) Marginal cost = Average revenue
Pairs of any linear programming problem are called:
- A) Primal and dual
- B) Dual
- C) Primal
- D) Shadow price
The firm is a price taker in which of the following market structures?
- A) Perfect competition
- B) Monopolistic competition
- C) Monopoly
- D) Oligopoly
Cigarettes are an example of which type of market structure?
- A) Monopoly
- B) Oligopoly
- C) Monopolistic competition
- D) Perfect competition
In perfect competition, demand curve is:
- A) Positively sloped
- B) Negatively sloped
- C) Vertical
- D) Horizontal
Firms are price makers in which of the following market structures?
- A) Oligopoly
- B) Monopolistic competition
- C) Perfect competition
- D) Monopoly
Which of the following is the similarity of monopolistic competition with perfect competition?
- A) Free entry and exit of firms
- B) Small number of buyers and sellers
- C) Barriers to entry and exit of firms
- D) Single buyer
Stock market is an example of which of the following market structures?
- A) Monopoly
- B) Oligopoly
- C) Perfect competition
- D) Monopolistic competition
Allocative efficiency is achieved in perfect competition at the point where:
- A) Price = Marginal revenue
- B) Price = Average revenue
- C) Price = Marginal cost
- D) Price = Average cost
Given the total revenue equation: TR = 26Q, marginal revenue is:
- A) 26 + Q
- B) 26
- C) Q
- D) 26Q
Given the marginal cost function: MC = 430 + 25Q. What is the slope of this marginal cost curve?
- A) 430+Q
- B) 25
- C) 430
- D) 25Q
In perfect competition, which of the following is the short run supply curve?
- A) Average revenue curve
- B) Average cost curve
- C) Marginal revenue curve
- D) Marginal cost curve
Many fast food restaurants are working in Pakistan. These are the example of:
- A) Monopoly
- B) Perfect competition
- C) Oligopoly
- D) Monopolistic competition
Price always exceeds marginal revenue in which of the following market structures?
- A) Oligopoly
- B) Monopoly
- C) Monopolistic competition
- D) Perfect competition
WAPDA is an example of which of the following market structures?
- A) Perfect competition
- B) Monopolistic competition
- C) Monopoly
- D) Oligopoly