A seller cannot influence the market price under.
- Perfect competition.
- Monopoly.
- Monopolistic competition.
- All of the above.
Question types
The theory of the firm under perfect competition question types
569 questions across 7 question groups — pick any mix to generate a Economics paper with step-by-step answer keys.
569
Questions
7
Question groups
5
Question types
01
M.C.Q (1 Marks)
139 Q→02True/False
41 Q→03Fill In The Blanks[1 Marks ]
13 Q→042 Marks Question
104 Q→053 Marks Question
101 Q→064 Marks Question
58 Q→07Answer The Following Questions In One Sentence.[1 Marks Each]
113 Q→Sample Questions
The theory of the firm under perfect competition questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
View full solution →
Demand curve of a firm is perfectly elastic under: (Choose the correct alternative)
- Perfect competition.
- Monopoly.
- monopolistic competition.
- Oligopoly.
A firm is not a price maker under.
- Oligopoly.
- Monopolistic competition.
- Monopoly.
- Perfect competition.
A firm is a price taker under.
- Perfect competition.
- Oligopoly.
- Monopolistic competition.
- Monopoly.
Marginal revenue of a firm is constant throughout under:
- Perfect competition.
- Monopolistic competition.
- Oligopoly.
- All the above.
With a fall in price, supply tends to increase. (True/ False)
Under perfect competition, price is determined by equilibrium of demand and supply. (True/ False)
Under perfect competition, commodities are heterogeneous in nature. (True/ False)
Supply for perishable goods is inelastic. (True/ False)
Supply curve slopes downwards from the right to the left. (True/ False)
If the market supply of a commodity X changes due to rise in price of a factor input, the market supply curve will ________. (Fill up the blank)
If the market supply of a commodity X changes due to improvement in technology, the market supply curve will ________. (Fill up the blank)
Total revenue of the firm is the __________ of total output and market price of the firm.
Under perfect competition, per unit price remains _______ therefore, average and marginal revenue curves coincide each other.
Under Perfect Competition market, firm is a ________.
In a perfectly competitive market, the buyers treat products of all the firms as homogeneous. Explain the significance of this feature.
Explain how technological progress is a determinant of supply of a good by a firm.
Explain how input prices are a determinant of supply of a good by a firm.
A firm supplies 10 units of a good at a price of 
5 per unit. Price elasticity of supply is 1.25. What quantity will the firm supply at a price of 7 per unit?
5 per unit. Price elasticity of supply is 1.25. What quantity will the firm supply at a price of 7 per unit?Explain the implications of large number of sellers in a perfectly competitive market.
When price of a good rises from ₹ 8 per unit to ₹10 per unit, producer supplies 40 units more. Price elasticity of supply is 2. What is the quantity supplied before the price change? Calculate.
Define Average Revenue. Show that Average Revenue, and Price are same.
Explain "perfect knowledge about the markets" feature of perfect competition.
When price of a good rises from ₹ 10 to ₹ 12 per unit, the producer supplies 10 percent more. Calculate price elasticity of supply.
Define market supply. Explain the factor 'input prices' that can cause a change in supply.
From the following information about a firm, find the firm’s equilibrium output in terms of marginal cost and marginal revenue. Give reasons. Also, find profit at this output.
| Output (units) | Total Revenue (₹) | Total Cost (₹) |
| 1 | 6 | 7 |
| 2 | 12 | 13 |
| 3 | 18 | 17 |
| 4 | 24 | 23 |
| 5 | 30 | 31 |
Explain the implications of the following in a perfectly competitive market:
- Large number of sellers
- Homogeneous products.
Examine the effect of (a) fall in the own price of good X and (b) rise in tax rate on good X, on the supply curve. Use diagrams.
With the help of a demand and supply schedule, explain the meaning of excess demand and its effect on price of a commodity.
State and discuss four characteristics of perfect competition.
When does ‘shift’ in supply curve take place?
When does “change in quantity demanded” take place?
What is market supply of a product?
Under which market form is a firm a price taker?
Give one reason for an “increase” in supply of a commodity.
Generate a The theory of the firm under perfect competition paper free
Pick question groups from the list above, set marks and difficulty, and export a branded PDF with step-by-step answer keys. First 3 chapters free — no signup.