CA Foundation Knowledge Portal

2nd Economics Question for Today:- When, we know that the firms are earning just normal profits. a) AC = AR b) MC = MR c) MC = AC d) AR = MR

Economics Question for Today:- A horizontal supply curve parallel to the quantity axis implies that the elasticity of supply is ———— a) Zero b) Infinite c) equal to one d) greater than zero but less than one

2nd Economics Question for Today:- Consumer surplus means ———— (a) the area inside the budget line (b) the area between the average revenue and marginal revenue curves (c) the difference between the maximum amount a person is willing to pay for a good and its market price (d) none of the above

Economics Question for Today:- Larger production of ———— goods would lead to higher production in future a) Consumer goods b) Capital goods c) Agricultural goods d) Public goods

Economics Question for Today:- Under ———— market condition, firms make normal profits in the long run. a) Perfect Competition b) Monopoly c) Oligopoly d) None of the above

Economics Question for Today:- A firm encounters its “shutdown point” when: (a) average total cost equals price at the profit-maximizing level of output (b) average variable cost equals price at the profit-maximizing level of output (c) average fixed cost equals price at the profit-maximizing level of output (d) marginal cost equals price at the profit-maximizing level of output