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1. Average Revenue means-
(A) the revenue per unit of commodity sold
(B) the revenue from all commodites sold
(C) the profit realised all commdoities unit sold
(D) the profit realised by sale of all commodities
Ans. (A)

2. Gross profit means-
(A) Total investment over total saving
(B) Changes in methods of production
(C) Changes in the form of business organisation
(D) Total receipts over total expenditure
Ans. (D)

3. The situation in which total Revenues equals total cost, is known as-
(A) Monopolistic competition
(B) Equilibrium level of output
(C) Break even point
(D) Perfect competition
Ans. (C)

4. Who propounded the Innovation theory of profit?
(A) J.A. Schumpeter
(B) P.A. Samuelson
(C) Alfred Marshall
(D) David Ricardo
Ans. (A)

5. The market price is related to-
(A) Very short period
(B) Short period
(C) Long period
(D) Very long period
Ans. (A)

6. Who propounded Dynamic Theory of profit?
(A) Clark
(B) Schumpeter
(C) Knight
(D) Hawly
Ans. (A)

7. If the average revenue is a horizontal straight line, marginal revenue will be-
(A) U shaped
(B) Kinked
(C) Identical with average revenue
(D) L shaped
Ans. (C)

8. Economics profit or normal profit is the same as-
(A) Optimum profit
(B) Accounting profit
(C) Maximum profit
(D) Net profit
Ans. (A)

9. If one more cobbler is hired the output of a shoe making unit will increase from 50 pairs of shoes to 55 pairs per day, but then the shoe making unit will have to reduce the price of a pair of shoes from Rs 3200 to Rs 3000 per pair to sell the additional output, the marginal revenue product of the last cobbler is-
(A) Rs 1000
(B) Rs 5000
(C) Rs 4000
(D) Rs 200
Ans. (B)

10. The marginal revenue of monopolist is-
(A) More than price
(B) Equal to price
(C) Less than price
(D) Less than marginal cost
Ans. (C)

11. For a price taking firm, average revenue is ______ market price.-
(A) Half of
(B) Equal to
(C) Double of
(D) Less than
Ans. (B)

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