Class 12 Economics Chapter 4 The Theory of Firm Under Perfect Competition MCQ Questions with Answer

Class 12 MCQs

Class 12 Economics Chapter 4 MCQ PDF is one of the best strategies to prepare for the CBSE Class 12 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more MCQ on The Theory of Firm Under Perfect Competition Class 12 PDF which will help them all through their board test.

Class 12 Economics Chapter 4 MCQ Questions with Answer

Class 12 Economics MCQ with answers are given here for Chapter 4 The Theory of Firm Under Perfect Competition. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Economics syllabus. By Solving these Class 12 MCQs, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 Economics Chapter 4 MCQ with Answer according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE MCQ on The Theory of Firm Under Perfect Competition Class 12 PDF with answers given below.

Question 1. According to which economist “Price of a commodity is determined by the forces of demand and supply”:
(a) Jevons
(b) Valros
(c) Marshall
(d) None of these.

Answer

C

Question 2. Which of the following is an example of perfect competition?
(a) Agriculture
(b) Banking sector
(c) Car manufacturing
(d) Railways

Answer

A

Question 3. A rational consumer is a person who?
(a) Has perfect knowledge of the market
(b) Is not influenced by persuasive advertising
(c) Behaves at all times, other things being equal, in a judicious manner
(d) Knows the prices of goods in different market and buys the cheapest

Answer

A

Question 4.What is price line
(a) The demand curve
(b) The AR curve
(c) The MR curve
(d) The TR curve

Answer

C

Question 5.Which is a characteristic of the market ?
(a) One Area
(b) Presence of both Buyers and Sellers
(c) Single Price of the Commodity
(d) All the above

Answer

D

Question 6.Which of the following is a feature of perfect competition ?
(a) Large Number of Buyers and Sellers
(b) Homogeneous Units of the Product
(c) Perfect Knowledge of the Market
(d) All the above

Answer

D

Question 7. None of these Rent is = ?
(a) Actual Income – Transfer Earnings
(b) Actual Income + Transfer Earnings
(c) Transfer Earnings
(d) None of these

Answer

A

Question 8. Other name by which average revenue curve known:
(a) Indifference curve
(b) Profit curve
(c) Average cost curve
(d) Demand curve

Answer

D

Questions 9. Administrative price is:
(a) Price ceiling
(b) Price floor
(c) Both (a) and (b)
(d) None of these

Answer

C

Question 10. Beyond producer’s equilibrium when MR<MC, the firm earns only
(a) Abnormal profit
(b) Normal loss
(c) Abnormal loss
(d) Normal Profit

Answer

C

Questions 11. Excess demand can be seen in:
(a) Fixed market price
(b) Lowest fixed price
(c) Highest fixed price
(d) None of these.

Answer

C

Question 12. Profits of the firm will be more at:
(a) MR = MC
(b) Additional revenue from extra unit equalits additional cost
(c) Both of above
(d) None

Answer

C

Question 13. A competitive firm in the short run incurs losses. The firm continues production, if?
(a) P = AVC
(b) P > AVC
(c) P < AVC
(d) P > = AVC

Answer

D

Question 14. The concept of supply curve is relevant only for?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

Answer

C

Question 15. Which one of the following is true for monopoly ?
(a) Firm is price-maker
(b) Demand curve slopes downward
(c) Price discrimination possibility arises
(d) All the above

Answer

D

Question 16. The elasticity at a point on a straight line supply curve passing through the origin will be
(a) 3.0
(b) 1.0
(c) 4.0
(d) 2.0

Answer

B

Question 17. In perfect competition, in the long run, ______________?
(a) There are large profits for the firm
(b) There is no profit and no loss for the firm
(c) There are negligible profits for the firm
(d) There are large losses for the firm

Answer

B

Whoever needs to take the CBSE Class 12 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 12 Economics Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Class 12 The Theory of Firm Under Perfect Competition MCQ PDF are ready by the subject specialists themselves.

Question 18. A Seller Cannot influence the market price under:
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic Competition
(d) All of these

Answer

A

Question 19.The concept of supply curve is relevant only for?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

Answer

C

Question 20. What should firm do when Marginal revenue is greater than marginal cost?
(a) Firm should expand output
(b) Effect should be made to make them equal
(c) Prices should be covered down
(d) All of these

Answer

A

Question 21. What does a monopolist market show ?
(a) Production process
(b) Distribution system
(c) Nature of market
(d) None of these

Answer

C

Question 22. In the perfectly competitive market, in the long run, competitive prices equal the minimum possible ________ cost of good?
(a) Average
(b) Total
(c) Variable
(d) Marginal

Answer

A

Question 23. The elasticity at a point on a straight-line supply curve passing through the origin making an angle of 45° will be
(a) 4.0
(b) 2.0
(c) 3.0
(d) 1.0

Answer

D

Question 24.What is price line
(a) The demand curve
(b) The AR curve
(c) The MR curve
(d) The TR curve

Answer

C

Question 25. Can MR be negative or zero.
(a) Yes
(b) Can’t say
(c) No
(d) Only negative but not zero

Answer

A

Question 26. In which market is AR equal to MR ?
(a) Perfect competition
(b) Oligopoly
(c) Imperfect competition
(d) Monopoly

Answer

A

Question 27. A producer’s equilibrium is a situation when
(a) AR = MR
(b) MR = MC
(c) AR = AC
(d) TR = TC

Answer

B

Question 28. Market situation where there is only one buyer is:  
(a) Monopoly
(b) Monopsony
(c) Duropoly
(d) None of these

Answer

B

Question 29. Other name by which average revenue curve known :
(a) Indifference curve
(b) Profit curve
(c) Average cost curve
(d) Demand curve

Answer

D

Question 30. In perfect competition, a firm:
(a) Determines price
(b) Obtains price
(c) Both (a) and (b)
(d) None of these

Answer

B

Question 31. Price of a commodity is determined at a point where :
(a) Demand exceeds
(b) Supply exceeds
(c) Demand equals supply
(d) None of these

Answer

C

Question 32. How many categories of production duration have been made by Marshall on the basis of supply ?
(a) Two
(b) Three
(c) Four
(d) Seven

Answer

B

Question 33. Market Price is found in:
(a) Short Period Market
(b) Long Period Market
(c) Very Long Period Market
(d) None of these

Answer

A

Question 34. In perfect competition, which of the following curves generally lies below the demand curve and slopes downward?
(a) Average revenue
(b) Average cost
(c) Marginal revenue
(d) Marginal cost

Answer

C

Question 35. A firm can sell as much as it wants at the market price. The situation is related to?
(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

Answer

C

You can easily get good marks If you study with the help of Class 12 The Theory of Firm Under Perfect Competition MCQ PDF. We trust that information provided is useful for you. NCERT Class 12 Economics Chapter 4 MCQ Free Download would without a doubt create positive results.

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Frequently Asked Question (FAQs)

How many MCQ questions are there in Class 12 Economics Chapter 4?

In Class 12 Economics Chapter 4, we have provided 35 Important MCQ Questions, But in the future, we will add more MCQs so that you can get good marks in the Class 12 exam.

Can we score good marks in Class 12 Economics with the help of The Theory of Firm Under Perfect Competition MCQ Class 12 Economics MCQ Questions?

Yes, MCQ Question is one of the best strategies to make your preparation better for the CBSE Board Exam. It also helps to know the student’s basic understanding of each chapter. So, You can score good marks in the Class 12 Economics exam.

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