Statement 1: MR = MC is a necessary condition for producer's equi…

MCQ

Statement 1: MR = MC is a necessary condition for producer's equilibrium.
Statement 2: Equilibrium always refers to a situation when profits are maximised.

A
Both the statements are true
B
Both the statements are false
✓
Statement 1 is true and Statement 2 is false
D
Statement 2 is true and Statement 1 is false

✓

Answer

Correct option: C.

Statement 1 is true and Statement 2 is false

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "Assertion (A) & Reason (B) MCQ" from MICROECONOMICS CH : 10 PRODUCER'S EQUILIBRIUM→MICROECONOMICS CH : 10 PRODUCER'S EQUILIBRIUM — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

Identify the correct sequence of alternatives given in Column II by matching them with respective items in Column I:

Column I	Column II
A. Market equilibrium	(i) Lowest price fixed by the government for a product
B. Increase in number of consumers	(ii) Equilibrium price and quantity both falls
C. Price floor	(iii) Demand curve shifts to the right
D. Decrease in demand > Decrease in supply	(iv) Market demand = Market supply

→

Assertion (A): When price of a good increases, demand for its substitute good rises and vice versa.
Reason (R) : Substitute goods are those goods which can be interchanged for use.

→

In the following questions (1-2), two statements are given. Read the statements carefully and choose the correct alternative among those given below:
Alternatives:
(a) Both the statements are true
(b) Both the statements are false
(c) Statement 1 is true and Statement 2 is false
(d) Statement 2 is true and Statement 1 is false
Statement 1: When average revenue is diminishing, it is greater than marginal revenue.
Statement 2: MR can be negative but not AR.

→

Statement 1: Due to a decrease in input price, equilibrium quantity falls.
Statement 2: A decrease in price of a complementary good causes a fall in equilibrium price of the concerned commodity.

→

Statement 1 IC is convex to the origin because MRS tends to rise as we move along the curve, left to right.
Statement 2 : A set of ICs drawn in a graph is called Indifference Set.

→

In the following questions (1-2), a statement of Assertion (A) is followed by a statement of Reason (R). Choose the correct alternative among those given below:
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Assertion (A) TVC is an upward sloping curve (inverted S-shaped).
Reason (R) : Variable cost changes with change in the level of output.

→

In the following questions (1-2), a statement of Assertion (A) is followed by a statement of Reason (R). Choose the correct alternative among those given below:
Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true but Reason (R) is false
(d) Assertion (A) is false but Reason (R) is true
Assertion (A) Law of Variable Proportions can be avoided.
Reason (R) : It is with improvement in technology that we can postpone the Law of Variable Proportions.