The monopolistic firm will be in equilibrium, where

Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer

A

Both 1 and 4

B

Both 3 and 4

C

Both 3 and 1

D

Only 1

The marginal cost is equal is to marginal revenue, the average cost is equal to average revenue, average revenue is equal to marginal revenue, and the average cost is equal to marginal cost. This is the condition of
1. Long-period equilibrium for a firm under monopoly.
2. Short-period equilibrium for a firm under oligopoly.
3. Long-period equilibrium
4. Long-period equilibrium for a firm under perfect competition.

A

1 and 4

B

3 and 4

C

1 and 3

D

Only 1

A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

A

Both 1 and 4

B

1, 2 and 4

C

Both 1 and 3

D

Only 4

A', 'B' and 'C' are partners in a partnership firm named A, B & C. 'A' retires from the firm without giving any public notice. Thereafter, an existing creditor lends Rs. ten lakh to the firm on the basis of his knowledge that 'A', 'B' and 'C' are the three partners in the firm. This amount remains unpaid by the firm. The creditor wants to recover the unpaid loan amount from the firm.

A

No one will be liable for the unpaid loan amount

B

A', 'B' and 'C' will be liable for the unpaid loan amount

C

Only 'B' and 'C' will be liable for the unpaid loan amount

D

Only 'A' will be liable for the unpaid loan amount

A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:

A

Z can sue A, B, C and X

B

Z can sue A, B and C

C

Z can sue either A, B and C, or A, B and X

D

Z can sue A and B only

Which two of the following statements are true? a) A simple monopoly firm always earns super normal profit b) Sweezy's kinked demand curve model is the best known model explaining relatively more satisfactory behaviour of oligopoly firm for price rigidity c) A perfectly competitive firm is price - taker d) Firms under monopolistic competition earn only normal profits Choose the correct option from those below

A

a) and d)

B

b) and d)

C

b) and c)

D

a) and c)

Which two of the following statements are true?
I. A simple monopoly firm always earns super normal profit
II. Sweezy's kinked demand curve model is the best known model explaining relatively more satisfactory behaviour of oligopoly firm for price rigidity
III. A perfectly competitive firm is price-taker
IV. Firms under monopolistic competition earn only normal profits
Choose the correct option from those below

A

I and IV

B

II and IV

C

II and III

D

I and III

The monopolistic firm will be in equilibrium where

A

Price = Marginal cost

B

Marginal revenue = Marginal cost

C

MR = MC = Price

D

Marginal cost = Total cost

In monopolistic competition of firm remains in equilibrium in the long run

A

At the lowest point of the long run average cost curve

B

In the descending segment of the long run average cost curve

C

In rising segment of the long run average cost curve

D

When price is equal to marginal cost

In monopolistic competition, a firm is in long run equilibrium

A

At the minimum point of the LAC curve

B

In the declining segment of the LAC curve

C

In the rising segment of the LAC curve

D

When price is equal to marginal cost

The monopolistic firm will be in equilibrium, where

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