Q1 of 50 Page 1

What is the relation between Average Variable Cost and Average Total Cost, if Total Fixed Cost is zero?

If the total fixed cost is zero, the average variable cost will be equal to the average total cost.


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2

A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be : (Choose the correct alternative)

a) Greater than Average Revenue


b) Less than Average Revenue


c) Equal to Average Revenue


d) Zero

 3

When does ‘change in demand’ take place?

 4

The differentiated product is a characteristic of (Choose the correct alternative) :

(a) Monopolistic competition only


(b) Oligopoly only


(c) Both monopolistic competition and oligopoly


(d) Monopoly

 5

Demand curve of a firm is perfectly elastic under : (Choose the correct alternative)

(a) Perfect competition


(b) Monopoly


(c) Monopolistic competition


(d) Oligopoly