Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of 1. long period equilibrium for a firm under monopoly 2. short period equilibrium for a firm under oligopoly 3. long period equilibrium 4. long period equilibrium for a firm under perfect competitions Select the correct answer

The marginal cost is equal is to marginal revenue, the average cost is equal to average revenue, average revenue is equal to marginal revenue, and the average cost is equal to marginal cost. This is the condition of
1. Long-period equilibrium for a firm under monopoly.
2. Short-period equilibrium for a firm under oligopoly.
3. Long-period equilibrium
4. Long-period equilibrium for a firm under perfect competition.

A

1 and 4

B

3 and 4

C

1 and 3

D

Only 1

In perfect competition, when a firm is in short periods, for equilibrium, the following condition does apply
1. Marginal cost must equal marginal revenue.
2. Average cost must equal average revenue.
3. Marginal revenue must equal average revenue.
4. Marginal cost must equal average cost.

A

1, 2 and 3

B

1 and 3

C

2, 3 and 4

D

Only 3

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and the price is equal to the average total cost, then the firm is

A

In long-run equilibrium

B

In short-run equilibrium

C

Minimizing short-run average total cost

D

Breaking even

Indicate the correct answer from the following types of the long run average cost curves on which the minimum average cost of production in long run can be determined.
1. Long run average cost curve under normal production function
2. Long run average cost curve under linearly homogeneous production function
3. Planning curve
4. Envelope curve

A

1, 2 and 3

B

2, 3 and 4

C

1, 3 and 4

D

Both 2 and 4

Short run marginal cost curve cuts the short run average cost curve from _______ at the minimum point of short run average cost.

A

top

B

below

C

right

D

left

When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.

A

Both 1 and 2

B

Only 3

C

Only 1

D

Only 2

A particular price level, there are no forces tending to move it either up or down, it means
1. the firm is in equilibrium.
2. the price is in equilibrium.
3. the equilibrium price of the firm.
4. the equilibrium price and quantity of a firm.
Select the correct answer

A

Both 1 and 4

B

1, 2 and 4

C

Both 1 and 3

D

Only 4

In the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to the short-run marginal cost and price is

A

Greater than average total cost

B

Less than average total cost

C

Greater than average variable cost

D

Less than average variable cost

The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true

A

When LAC is falling

B

Never

C

Always

D

Only at that level of output when LAC is at its minimum

Which of the following statements are true?
1. Marginal costing is not an independent system of costing.
2. In marginal costing, all fundamentals of cost are divided into fixed and variable components.
3. In marginal costing, fixed costs are treated as product cost.
4. Marginal costing is not a technique of cost analysis.

A

Both 4 and 1

B

Both 2 and 3

C

Both 1 and 2

D

Both 2 and 4