# Equilibrium of firm Perfect Competition and Monopoly

## A firm decides to exit the industry when:

A. AC strts rising B.MC starts rising C.Price is less than LAC D.TC starts rising

## In monopoly and perfect competition the cost curves are:

A. Same B.Different C.Opposite D.None of these

## Normal profit is called normal because:

A. It is neither very high nor very low B.It is minimum acceptable to the producer C.It is minimum which buyer wants to pay D.It is the maximum allowed by govt.

## If a firm shuts down temporarily, it will incur loss equal to:

A. AFC B.AVC C.TFC D.TVC

## Under perfect competition:

A. AC = AVC B.AR = AC C.AR = MC D.AR = MR

## When a competitive firm achieves long run equilibrium then:

A. P = MC B.MR = MC C.P = ATC D.All of the above

## The most efficient scale of production of a firm is where:

A. LAC is minimum B.SAC is minimum C.LMC is minimum D.SMC is minimum

## A firm should shut down in the short run if it is not covering its:

A. Variable cost B.Fixed cost C.Total cost D.Explicit cost (money outlays)