The theory of the firm under perfect competition — Economics STD 12 Humanities & Commerce — Question

Reason for the U-shape of MC curve is:

1. Law of Variable Proportions.
2. Returns to Scale.
3. Law of diminishing cost.
4. Law of increasing cost.

Credit creation by commercial banks is determined by:

1. Cash Reserve Ratio (CRR).
2. Statutory Liquidity Ratio (SLR).
3. Initial Deposits.
4. All the above.

Consider the following supply schedule.

S. No.	Price (₹ per unit)	Quantity Supplied (in units)
i.	10	200
ii.	10	100

It is called:

1. Decrease in supply.
2. Decrease in quantity supplied.
3. Decrease in demand.
4. All of the above.

Hitesh buys pizza and coke. The marginal utility of last piece of pizza is 80 utils and of last sip of coke is 40 utils. The price of pizza is ₹ 40 and that of coke is ₹ 20. This means that Hitesh is buying:

1. More pizza and less coke.
2. More coke and less pizza.
3. both at optimal level.
4. Same quantity of both.

Under monopoly form of market, TR is maximum when:

1. MR is maximum.
2. MR.
3. MR > 0.
4. MR is zero.

In which of the following market structure does a firm produce a unique product for which there are no close substitutes?

1. Perfect competition.
2. Monopolistic competition.
3. Oligopoly.
4. Monopoly.

Average product is defined as:

1. Total product divided by the total cost.
2. Total product divided by the marginal product.
3. Total product divided by the variable input.
4. Marginal product divided by the variable input.

What is the other name of fiscal policy?

1. Deficit financing.
2. Monetary policy.
3. Bank rate policy.
4. Revenue policy.

When more and more units of a variable factor are combined with the fixed factor, the resulting law is called:

1. Law of variable proportions.
2. Law of increasing Returns to Scale.
3. Law of Decreasing Return to Scale.
4. Law of Constant Return Scale.

Equilibrium price may be determined through _______.

1. only demand.
2. only supply.
3. both demand and supply.
4. none of the above.