MCQ Questions for Class 11 Economics Chapter 4 The Theory of the Firm under Perfect Competition with Answers

Here you will find NCERT MCQ Questions for Class 11 Economics with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 11 Economics. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.


Q1.Which of the following is not an essential condition of pure competition?

(a) Large number of buyers and sellers
(b) Homogeneous product
(c) Freedom of entry
(d) Absence of transport cost

(d) Absence of transport cost


Q2. Under which of the following forms of market structure does a firm has no control over the price of its product:

(a) Monopoly
(b) Oligopoly
(c) Monopolistic competition
(d) Perfect competition

(d) Perfect competition


Q3. Given the relation MR=P(1-\cfrac { 1 }{ e } ) if e > 1, then :

(a) MR > 0
(b) MR < 0
(c) MR = 0
(d) None

(a) MR > 0


Q4. Profits of the firm will be more at:

(a) MR = MC
(b) Additional revenue from extra unit equalits additional cost
(c) Both of above
(d) None

(c) Both of above


Q5. What should firm do when Marginal revenue is greater than marginal cost?

(a) Firm should expand output
(b) Effect should be made to make them equal
(c) Prices should be covered down
(d) All of these

(a) Firm should expand output


Q6. Under monopoly price discrimination depends upon:

(a) Elasticity of demand for commodity
(b) Elasticity of supply for commodity
(c) Size of market
(d) All of above

(a) Elasticity of demand for commodity


Q7. Firms in a monopolistic market are price _:

(a) Takers
(b) Givers
(c) Makers
(d) Acceptors

(c) Makers


Q8. Market which have two firms are known as:

(a) Oligopoly
(b) Duopoly
(c) Monopsony
(d) Oligopsony

(b) Duopoly


Q9. Monopolist can determine:

(a) Price
(b) Output
(c) Either price or output
(d) None

(c) Either price or output


Q10. MR of nth unit is given by:

(a) TRn/TRn – 1
(b) TRn + TRn – 1
(c) TRn – TRn – 1
(d) All of these

(c) TRn – TRn – 1


Q11. Beyond producer’s equilibrium when MR<MC, the firm earns only

(a) Abnormal profit
(b) Normal loss
(c) Abnormal loss
(d) Normal Profit

(c) Abnormal loss


Q12. Before producer’s equilibrium when MR > MC, the firm earns only

(a) Normal Profit
(b) Normal loss
(c) Abnormal loss
(d) Abnormal profit

(d) Abnormal profit


Q13. A producer’s equilibrium is a situation when

(a) AR = MR
(b) MR = MC
(c) AR = AC
(d) TR = TC

(b) MR = MC


Q14. The elasticity at a point on a straight line supply curve passing through the origin will be

(a) 3.0
(b) 1.0
(c) 4.0
(d) 2.0

(b) 1.0


Q15. The elasticity at a point on a straight-line supply curve passing through the origin making an angle of 45° will be

(a) 4.0
(b) 2.0
(c) 3.0
(d) 1.0

(d) 1.0


Q16. Under perfect competition the number of firms

(a) Is about 10
(b) Are many but limited
(c) Is large
(d) Is limited

(c) Is large


Q17. When _, the firms are earning just normal profit:

(a) AC = AR
(b) MC = AC
(c) AR = MR
(d) MC = MR

(a) AC = AR


Q18. In perfect competition, since the firm is a price taker, the __ curve is straight line

(a) Total cost
(b) Marginal cost
(c) Total revenue
(d) Marginal revenue

(d) Marginal revenue


Q19. Other name by which average revenue curve known:

(a) Indifference curve
(b) Profit curve
(c) Average cost curve
(d) Demand curve

(d) Demand curve


Q20. The concept of supply curve is relevant only for?

(a) Monopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Oligopoly

(c) Perfect competition


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Practicing NCERT Economics MCQs With Answers Pdf Class 11 is one of the best ways to prepare for the CBSE Class 11 board exam. There is no substitute for consistent practice whether one wants to understand a concept thoroughly or one wants to score better. If you have any queries regarding The CBSE Class 11 Economics MCQs Multiple Choice Questions with Answers, drop a comment below and we will get back to you soon.

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