Explore topic-wise MCQs in Business Economics.

This section includes 3 Mcqs, each offering curated multiple-choice questions to sharpen your Business Economics knowledge and support exam preparation. Choose a topic below to get started.

1.

In a perfectly competitive market, a firm in the long run operates at the level of output where :

A. AC = MC when MC is lowest
B. MC = AR = MR when MC is lowest
C. MR = MC
D. AR = MR =AC = MC
Answer» E.
Discussion
2.

Assertion A): At times, a business may face a situation where it has to shut down its operations.Reason R): If the revenue is less than its variable cost, the operation should be closed down.In the context of the above two statements, which one of the following codes is correct?

A. is correct but R) is not correct
B. and R) both are correct and R) is the right explanation of A)
C. and R) both are correct and R) is not the right explanation of A)
D. Both A) and R) are incorrect
Answer» C. and R) both are correct and R) is not the right explanation of A)
Discussion
3.

Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): In the case of short-run cost behaviour, MC curve intersects AC curve at its minimum Reason (R): While AC continues to decrease, MC begins to rise. Also, when AC is at its minimum, it is neither increasing nor decreasing. It is constant when AC is constant, it is equal to MC at the point of intersection Choose the correct option from those below 1. Both A) and R) true and R) is the correct explanation of A)2. Both A) and R) true but R) is NOT the correct explanation of A)3. A) is true but R) is false4. A) is false but R) is true

A. 1
B. 2
C. 3
D. 4
Answer» B. 2
Discussion