Page 1 - H. A Producer's equilibrium
P. 1
SAI INTERNATIONAL SCHOOL
ECONOMICS
HOME ASSIGNMENT
Micro Economics
Class-XI
Topic: - PRODUCER’S EQUILIBRIUM
Very short answer type questions Marks
1. The earning of a producer is called 1
a. Rent
b. Interest
c. Profit
d. Wages
2. Producer is in equilibrium, when 1
a.MC =MR
b. MC> MR after equilibrium
c. Both a&b
d. Neither a nor b
3. MC is greater than MR at a particular level 1
of output, then producer
a. May increase or decrease the level
of output depending upon the
situation
b. Will increase output
c. Will decrease output
d. None of the these
4. In case of perfect competition , a firm is in 1
equilibrium when
a. MC=MR
b. MC cuts MR from below
c. MC is rising when it cuts MR
d. All of these
5. Profit is a residual income . (true / 1
false)