Commerce Exam > Commerce Notes > Economics Class 11 > Worksheet: The Theory of the Firm under Perfect Competition- 1
Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce PDF Download
| Table of contents |
|
| Multiple Choice Questions |
|
| Match the Following |
|
| True or False |
|
| Very Short Answers |
|
| Short Answers |
|
| Long Answers |
|
Multiple Choice Questions
Q1: Which market structure is characterized by numerous buyers and sellers, homogeneous products, and perfect information?
(a) Perfect Competition
(b) Monopoly
(c) Oligopoly
(d) Monopolistic Competition
Q2: What is the primary goal of a firm operating under perfect competition?
(a) Maximize Profit
(b) Increase Market Share
(c) Minimize Costs
(d) Set the Highest Price Possible
Q3: In perfect competition, which of the following is true regarding the demand curve faced by a firm?
(a) Perfectly Elastic
(b) Downward Sloping
(c) Upward Sloping
(d) Horizontal at Market Price
Q4: What happens to the price and output level of a firm in the short run if it incurs losses?
(a) Price Decreases, Output Decreases
(b) Price Increases, Output Decreases
(c) Price Increases, Output Increases
(d) Price Decreases, Output Increases
Q5: Which of the following statements is true about a firm in perfect competition in the long run?
(a) Firms can earn economic profit in the long run.
(b) Firms can only cover their explicit costs in the long run.
(c) Firms can earn normal profit in the long run.
(d) Firms can only survive if they make supernormal profit.
Match the Following
Q: Match the following terms with their correct definitions:
True or False
Q1: Perfectly competitive firms can freely enter or exit the market.
Q2: In perfect competition, each firm has some degree of market power.
Q3: Perfectly elastic demand curve implies that the firm can sell any quantity of output at the market price.
Q4: Firms in perfect competition can engage in non-price competition to increase sales.
Q5: Normal profit is the minimum level of profit necessary to keep a firm in operation.
Very Short Answers
Q1: Explain the concept of perfect competition in one sentence.
Q2: Define Marginal Revenue (MR).
Q3: Why is the demand curve facing a perfectly competitive firm perfectly elastic?
Q4: What is the significance of the price being equal to marginal cost for a firm in perfect competition?
Q5: State one condition necessary for a firm to achieve profit maximization in perfect competition.
Short Answers
Q1: Profit Maximization in Perfect Competition
Q2: Role of Perfect Competition in Promoting Consumer Welfare
Q3: Short-Run and Long-Run Equilibrium of a Firm in Perfect Competition
Q4: Importance of Price Elasticity of Demand for Perfectly Competitive Firms
Q5: Challenges Faced by Firms in Perfect Competition
Long Answers
Q1: Market Entry and Exit in Perfect Competition
Q2: Efficiency of Perfectly Competitive Markets
Q3: Price Determination in Perfect Competition
Q4: Benefits of Perfect Competition for Consumers and Society
Q5: Importance of Perfect Competition in the Economy
The document Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce is a part of the Commerce Course Economics Class 11.
All you need of Commerce at this link: Commerce
|
58 videos|215 docs|44 tests
|
FAQs on Worksheet: The Theory of the Firm under Perfect Competition- 1 - Economics Class 11 - Commerce
| 1. What is the theory of the firm under perfect competition? |  |
Ans. The theory of the firm under perfect competition is an economic concept that describes the behavior and decision-making process of a firm operating in a perfectly competitive market. In this theory, firms are assumed to be price takers, meaning they have no control over the market price and must accept it as given. They aim to maximize their profits by optimizing their production and cost decisions.
| 2. What are the characteristics of a perfectly competitive market? | |
Ans. A perfectly competitive market is characterized by several key features. Firstly, there are many buyers and sellers in the market, none of whom have significant market power to influence the price. Secondly, all firms in the market produce identical products, leading to perfect substitutability. Thirdly, there is free entry and exit of firms in the market, ensuring long-run equilibrium. Lastly, there is perfect information available to all market participants.
| 3. How does a firm determine its profit-maximizing level of output in perfect competition? | |
Ans. In perfect competition, a firm determines its profit-maximizing level of output by equating its marginal cost (MC) with the market price (P). As a price taker, the firm cannot influence the market price and must accept it as given. By producing at the level where MC equals P, the firm ensures that it minimizes costs and maximizes profits. Any level of output where MC is greater than P would lead to losses, while any level where MC is less than P would not be optimal.
| 4. What is the relationship between a firm's short-run and long-run profits in perfect competition? | |
Ans. In perfect competition, a firm can generate positive economic profits in the short run if the market price exceeds its average total cost (ATC). However, in the long run, due to the absence of barriers to entry, new firms can enter the market, increasing competition. This leads to an increase in supply, which eventually drives the market price down. As a result, firms in the long run earn zero economic profits, as the market price equals their average total cost.
| 5. How does perfect competition benefit consumers? | |
Ans. Perfect competition benefits consumers in multiple ways. Firstly, it ensures that consumers have access to a wide range of products at competitive prices. The presence of many sellers and perfect information allows consumers to make informed choices and select the best product for their needs. Additionally, the absence of market power among firms prevents them from charging excessive prices. This competition-driven market structure promotes efficiency, innovation, and consumer welfare.
Related Exams
About this Document
|
4.67/5 Rating |
|
Dec 05, 2024 Last updated |
Document Description: Worksheet: The Theory of the Firm under Perfect Competition- 1 for Commerce 2024 is part of Economics Class 11 preparation.
The notes and questions for Worksheet: The Theory of the Firm under Perfect Competition- 1 have been prepared according to the Commerce exam syllabus. Information about Worksheet: The Theory of the Firm under Perfect Competition- 1 covers topics
like Multiple Choice Questions, Match the Following, True or False, Very Short Answers , Short Answers, Long Answers and Worksheet: The Theory of the Firm under Perfect Competition- 1 Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Worksheet: The Theory of the Firm under Perfect Competition- 1.
Introduction of Worksheet: The Theory of the Firm under Perfect Competition- 1 in English is available as part of our Economics Class 11
for Commerce & Worksheet: The Theory of the Firm under Perfect Competition- 1 in Hindi for Economics Class 11 course.
Download more important topics related with notes, lectures and mock test series for Commerce
Exam by signing up for free. Commerce: Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce
Description
Full syllabus notes, lecture & questions for Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Economics Class 11 | Best notes, free PDF download
Information about Worksheet: The Theory of the Firm under Perfect Competition- 1
In this doc you can find the meaning of Worksheet: The Theory of the Firm under Perfect Competition- 1 defined & explained in the simplest way possible. Besides explaining types of
Worksheet: The Theory of the Firm under Perfect Competition- 1 theory, EduRev gives you an ample number of questions to practice Worksheet: The Theory of the Firm under Perfect Competition- 1 tests, examples and also practice Commerce
tests
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce
,ppt
,past year papers
,Extra Questions
,Sample Paper
,mock tests for examination
,Semester Notes
,Objective type Questions
,Free
,Exam
,Viva Questions
,shortcuts and tricks
,Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce
,MCQs
,practice quizzes
,Worksheet: The Theory of the Firm under Perfect Competition- 1 | Economics Class 11 - Commerce
,Summary
,Important questions
,Previous Year Questions with Solutions
,study material
,video lectures
;
Additional Information about Worksheet: The Theory of the Firm under Perfect Competition- 1 for Commerce Preparation
Worksheet: The Theory of the Firm under Perfect Competition- 1 Free PDF Download
The Worksheet: The Theory of the Firm under Perfect Competition- 1 is an invaluable resource that delves deep into the core of the Commerce exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Worksheet: The Theory of the Firm under Perfect Competition- 1 now and kickstart your journey towards success in the Commerce exam.
Importance of Worksheet: The Theory of the Firm under Perfect Competition- 1
The importance of Worksheet: The Theory of the Firm under Perfect Competition- 1 cannot be overstated, especially for Commerce aspirants.
This document holds the key to success in the Commerce exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Worksheet: The Theory of the Firm under Perfect Competition- 1 Notes
Worksheet: The Theory of the Firm under Perfect Competition- 1 Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Worksheet: The Theory of the Firm under Perfect Competition- 1.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Worksheet: The Theory of the Firm under Perfect Competition- 1 Notes on EduRev are your ultimate resource for success.
Worksheet: The Theory of the Firm under Perfect Competition- 1 Commerce Questions
The "Worksheet: The Theory of the Firm under Perfect Competition- 1 Commerce Questions" guide is a valuable resource for all aspiring students preparing for the
Commerce exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Worksheet: The Theory of the Firm under Perfect Competition- 1 on the App
Students of Commerce can study Worksheet: The Theory of the Firm under Perfect Competition- 1 alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Worksheet: The Theory of the Firm under Perfect Competition- 1,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Worksheet: The Theory of the Firm under Perfect Competition- 1 is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup