Producer Behaviour and Supply Test

Result

Producer Behaviour and Supply Test - 1

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Weekly Quiz Competition

Question 1
1 / -0

A supply schedule is best defined as

A
Graphical representation of quantity supplied at a particular price only

B
Tabular representation of quantity supplied at various profit levels

C
Tabular representation of quantity supplied at keeping prices constant

D
Tabular representation of quantity supplied at various prices

Solution

Price - quantity supplied

1   - 10

2   -   15

5    - 25

In this schedule we can see that as the price of the commodity increases , its supply also increases
Question 2
1 / -0

Average cost is derived by

A
Multiplying Total Cost by units of output

B
Adding Total Cost by units of output

C
Dividing Total Cost by units of output

D
Subtracting Total Cost by units of output

Solution

It refers to the per unit cost of production.

AC=TC÷Q
Question 3
1 / -0

Can MR be negative or zero?

A
May not be

B
May be

C
No

D
Yes

Solution

MR will become negative when TR starts falling.
Question 4
1 / -0

The relationship between AC & MC is

A
AC continues to fall till MC is equal to AC

B
AC continues to fall till MC is greater than AC

C
AC continues to fall till MC is less than AC

D
AC continues to rise till MC is less than AC

Solution

When MC <AC , AC falls

When MC=AC , AC is constant and at ita minimum point

When MC> AC, AC rises
Question 5
1 / -0

In the short run TPP changes with the change in which of the following factors

A
Economic cost

B
Variable factors

C
Fixed factors

D
All the factors

Solution

In the short run, only the variable factors can be changed. Fixed factors cannot be changed in the short run.
Question 6
1 / -0

The fixed cost curve is a horizontal straight line to the X axis because

A
IT remains same even if fixed factors change

B
It remains constant in the short run

C
It is impossible to change

D
It remains constant in the long run

Solution

The fixed costs remain constant at all levels of output. Suppose the fixed costs is Rs. 50,000 , then it will be the same at all levels of output and even at zero level of output, the fixed costs will be Rs. 50000. Since it remains at the same level, it is a horizontal straight line parallel to the X axis.
Question 7
1 / -0

AVC and AFC always lie below AC because

A
They are always downward sloping

B
Their sum is equal to AC

C
They are concave

D
They are convex

Solution

AC curve will always lie above the AVC and AFC curve because AC , at all levels of output includes both AVC and AFC.
Question 8
1 / -0

What happens to TR when MR is decreasing but remains positive

A
Decreases at increasing rate

B
Increases at decreasing rate

C
Increases at increasing rate

D
Decreases at decreasing rate

Solution

when MR is declining but is positive, TR increases at a decreasing rate. After this, when MR becomes zero, TR is maximum and then when MR becomes negative, TR starts falling.
Question 9
1 / -0

What happens to TR when MR is zero

A
Decreases at decreasing rate

B
Increases at decreasing rate

C
Decreases at increasing rate

D
TR is Constant

Solution

When MR is Zero , TR is at its maximum and constant. This can be seen from the following figure.
Question 10
1 / -0

Revenue for a firm is

A
Money receipts from the sale of output

B
Money spent on producing output

C
Addition to Total revenue after a good is sold

D
Average price of a product sold

Solution

It refers to the amount received by a firm from the sale of a given quantity of a commodity in the market.

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Re-Attempt Weekly Quiz Competition

Producer Behaviour and Supply Test - 1

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Producer Behaviour and Supply Test - 1

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SHARING IS CARING

Question 1

Graphical representation of quantity supplied at a particular price only

Tabular representation of quantity supplied at various profit levels

Tabular representation of quantity supplied at keeping prices constant

Tabular representation of quantity supplied at various prices

Solution

Question 2

Multiplying Total Cost by units of output

Adding Total Cost by units of output

Dividing Total Cost by units of output

Subtracting Total Cost by units of output

Solution

Question 3

May not be

May be

No

Yes

Solution

Question 4

AC continues to fall till MC is equal to AC

AC continues to fall till MC is greater than AC

AC continues to fall till MC is less than AC

AC continues to rise till MC is less than AC

Solution

Question 5

Economic cost

Variable factors

Fixed factors

All the factors

Solution

Question 6

IT remains same even if fixed factors change

It remains constant in the short run

It is impossible to change

It remains constant in the long run

Solution

Question 7

They are always downward sloping

Their sum is equal to AC

They are concave

They are convex

Solution

Question 8

Decreases at increasing rate

Increases at decreasing rate

Increases at increasing rate

Decreases at decreasing rate

Solution

Question 9

Decreases at decreasing rate

Increases at decreasing rate

Decreases at increasing rate

TR is Constant

Solution

Question 10

Money receipts from the sale of output

Money spent on producing output

Addition to Total revenue after a good is sold

Average price of a product sold

Solution

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