The condition of long period equilibrium for a firm operating under perfect competition is-

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

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

A

Both 1 and 4

B

Both 3 and 4

C

Both 3 and 1

D

Only 1

Assertion (A) All firms under perfect competition in long run earn only normal profit.
Reason (R) All firms under perfect competition in long run operate at the minimum average cost level.

A

Both (A) and (R) are true

B

(A) is true, but (R) is not true

C

(A) is not true, but (R) is true

D

Both (A) and (R) are false

The conditions of long period equilibrium for a firm operating under perfect competition are
1. MC = MR
2. AC = AR
3. AR = MR
4. AC = MC
Select the correct answer

A

Only 1

B

Both 1 and 3

C

2, 3 and 4

D

All of the above

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

A', 'B' and 'C' are partners in a partnership firm named A, B & C. 'A' retires from the firm without giving any public notice. Thereafter, an existing creditor lends Rs. ten lakh to the firm on the basis of his knowledge that 'A', 'B' and 'C' are the three partners in the firm. This amount remains unpaid by the firm. The creditor wants to recover the unpaid loan amount from the firm.

A

No one will be liable for the unpaid loan amount

B

A', 'B' and 'C' will be liable for the unpaid loan amount

C

Only 'B' and 'C' will be liable for the unpaid loan amount

D

Only 'A' will be liable for the unpaid loan amount

A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:

A

Z can sue A, B, C and X

B

Z can sue A, B and C

C

Z can sue either A, B and C, or A, B and X

D

Z can sue A and B only

Under perfect competition a firm will be in stable equilibrium in the long run if the price is equal to

A

Marginal revenue

B

Marginal cost

C

Average fixed rate

D

Average variable cost

Under perfect competition, the long run equilibrium of the firm is established at

A

minimum point of LAC

B

highest point of LAC

C

minimum point of SAC

D

highest point of SAC

Assertion (A): Where any special or local law prescribes for any suit appeal or application a period of limitation different from period prescribed by the Schedule, the provisions of Section 3 of Limitation Act, 1963 shall apply as if such period were the period prescribed by the schedule.
Reason (R): Where a Special Law prescribes a period of limitation for filing appeal but there is no provision therefore under Limitation Act, 1963, the period of limitation provided under the Special Law must be treated to be different from that under the Limitation Act.

A

Both (A) and (R) are true and (R) is correct explanation of (A)

B

Both (A) and (R) are true but (R) is not correct explanation of (A)

C

(A) is true but (R) is false

D

(A) is false but (R) is true