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12.

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2 C 83037
Under which of the following conditions a perfect competitive firm will be in equilibrium :
(a) SRMC =P.
(b) SRATC =P.
(c) When it produces at the minimum point on its LRAC.
(d) All the above.
A firm is said to be a price searcher if it’s demand curve is a:
(a) Horizontal.
(b) Vertical. |
(c) Upward sloping. J
(d) Downward sloping from left to right.
For a monopolistically competitive firm to be earning positive economic profit :
(a) The production period must be the long run.
(b) The production period must be the short run.
(€) Rival firms must not exist.
(d) Barriers to entry must exist.
Product differentiation is the feature of which of the following markets ?
(a) Monopoly. (b) Monopolistic competition.
(c) Duopoly. (१) Monopsony.
Which of the following is a derived demand ?
(a) Demand for I-Phone. ன்‌

(b) Demand for an Apple. ‏یا‎
‎(c) Demand for Steve Job’s Biography.
(d) Demand for labour by Apple company.
A market with in which there are only few buyers is :
(a) Monopsony. (b) Ologopsony.
(c) Oligopoly. (d) Monopoly.
Zero economic profit in monopolistically competitive industries can be caused by :
(a) Barriers to entry.
(b) The lack of significant barriers to the entry of rival firms.
(c) Failure to accept worthwhile risks.

(d) The existence of excess capacity.
(12 x 4% = 6 marks)