Chapter 13
Equilibrium of Perfectly Competitive Firm and Industry
Multiple Choice Questions
1. Perfectly competitive stable equilibrium of the short period is determined when
āĻāĻŽ āϏāĻŽāϝ়ā§° āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻিāϤাāĻŽূāϞāĻ āϏ্āĻĨিā§° āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ় āĻেāϤিāϝ়া
(a) MR=MC
āĻāĻŽāĻā§°=āĻāĻŽāĻি
(b) MC curve slopes positively
āĻāĻŽāĻি āĻŦāĻ্ā§° āĻāϤিāĻŦাāĻāĻāĻাā§ąে āĻĸাāϞ
(c) both of the above are true
āĻāĻĒā§°োāĻ্āϤ āĻĻুāϝ়োāĻা āϏঁāĻা
Answer: (c) both of the above are true (āĻāĻĒā§°োāĻ্āϤ āĻĻুāϝ়োāĻা āϏঁāĻা)।
2. The short run shut-down point of the firm occurs when
āĻĢাā§°্āĻŽā§° āĻāĻŽু ā§°াāĻŖ āĻļ্āĻŦāĻ-āĻĄাāĻāύ āĻĒāĻāĻŖ্āĻ āĻো āϤেāϤিāϝ়া āĻšāϝ় āϝেāϤিāϝ়া
(a) Price=Min. AC
āĻŽূāϞ্āϝ=āύ্āϝূāύāϤāĻŽ। āĻāĻি
(b) Price=Min. AVC
āĻŽূāϞ্āϝ=āĻŽিāύ। āĻāĻিāĻি
(c) Price= Min. MC
āĻŽূāϞ্āϝ= āύ্āϝূāύāϤāĻŽ āĻāĻŽāĻি
Answer: (b) Price=Min. AVC (āĻŽূāϞ্āϝ=āĻŽিāύ। āĻāĻিāĻি)।
3. The break-even point occurs when
āĻŦ্ā§°েāĻ-āĻāĻেāύ āĻĒāĻāĻŖ্āĻ āĻো āϤেāϤিāϝ়া āĻšāϝ় āϝেāϤিāϝ়া
(a) TR>TC
āĻিāĻā§°>āĻিāĻি
(b) TR=TC
āĻিāĻā§°=āĻিāĻি
(c) TR<TC
āĻিāĻā§°<āĻিāĻি
Answer: (b) TR=TC (āĻিāĻā§°=āĻিāĻি)।
4. The size of firm is optimum when
āĻĢাā§°্āĻŽā§° āĻāĻাā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻšāϝ় āϝেāϤিāϝ়া
(a) AC is falling
āĻāĻি āĻĒā§°ি āĻāĻে
(b) AC is rising
āĻāĻি āĻŦাāĻĸ়ি āĻāĻে
(c) AC is the minimum
āĻāĻি āĻšৈāĻে āύিāĻŽ্āύāϤāĻŽ
Answer: (c) AC is the minimum (āĻāĻি āĻšৈāĻে āύিāĻŽ্āύāϤāĻŽ)।
Short Answer Type Questions
1. what are conditions for firm's equilibrium in short period and long period?
āĻāĻŽ āϏāĻŽāϝ় āĻā§°ু āĻĻীāĻāϞীāϝ়া āϏāĻŽāϝ়āϤ āĻĢাā§°্āĻŽā§° āϏāύ্āϤুāϞāύ⧰ āĻŦাāĻŦে āĻā§°্āϤāĻŦোā§° āĻি?
Answer:
2. Differentiate between the equilibrium of firm and the equilibrium of industry.
āĻĻৃāĻĸ়āϤাā§° āϏāύ্āϤুāϞāύ āĻā§°ু āĻāĻĻ্āϝোāĻā§° āϏāύ্āϤুāϞāύ⧰ āĻŽাāĻāϤ āĻĒাā§°্āĻĨāĻ্āϝ āĻā§°া।
Answer:
3. How is short run equilibrium of firms determined under perfect competition?
āύিāĻুঁāϤ āĻĒ্ā§°āϤিāϝোāĻিāϤাā§° āĻ āϧীāύāϤ āĻĒ্ā§°āϤিāώ্āĻ াāύāĻŦোā§°ā§° āĻāĻŽ āϏāĻŽāϝ়ā§° āϏāύ্āϤুāϞāύ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়?
Answer:
4. How is the short run shut-down point of a competitive firm determined?
āĻĒ্ā§°āϤিāϝোāĻিāϤাāĻŽূāϞāĻ āĻĢাā§°্āĻŽ āĻāĻাā§° āĻāĻŽু ā§°াāĻŖ āĻļ্āĻŦāĻ-āĻĄাāĻāύ āĻĒāĻāĻŖ্āĻ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়?
Answer:
5. How is the optimum point of a firm determined?
āĻāĻা āĻĢাā§°্āĻŽā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻŦিāύ্āĻĻু āĻেāύেāĻৈ āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়?
Answer:
Long Answer Type Questions
1. Explain the short run equilibrium of a firm and industry.
āĻĢাā§°্āĻŽ āĻā§°ু āĻāĻĻ্āϝোāĻ āĻāĻাā§° āĻāĻŽু ā§°াāĻŖā§° āϏāύ্āϤুāϞāύ āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
2. How is the equilibrium of firm and industry determined in the long run?
āĻĻীā§°্āĻāĻŽ্āϝাāĻĻী āϏāĻŽāϝ়āϤ āĻĻৃāĻĸ় āĻā§°ু āĻāĻĻ্āϝোāĻā§° āϏāύ্āϤুāϞāύ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়?
Answer:
3. How is short run shut-down point of a perfectly competitive firm determined.
āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻিāϤাāĻŽূāϞāĻ āĻĢাā§°্āĻŽ āĻāĻাā§° āĻāĻŽু ā§°াāĻŖ āĻļ্āĻŦāĻ-āĻĄাāĻāύ āĻĒāĻāĻŖ্āĻ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°া āĻšāϝ়।
Answer:
4. Determine the long run equilibrium of firm and industry under perfect competition.
āύিāĻুঁāϤ āĻĒ্ā§°āϤিāϝোāĻিāϤাā§° āĻ āϧীāύāϤ āĻĻৃāĻĸ় āĻā§°ু āĻāĻĻ্āϝোāĻā§° āĻĻীā§°্āĻāĻŽ্āϝাāĻĻী āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
5. Derive the short run supply curve of industry under perfect competition.
āύিāĻুঁāϤ āĻĒ্ā§°āϤিāϝোāĻিāϤাā§° āĻ āϧীāύāϤ āĻāĻĻ্āϝোāĻā§° āĻāĻŽু ā§°াāĻŖā§° āϝোāĻাāύ āĻŦāĻ্ā§° āĻāĻšā§°āĻŖ āĻā§°া।
Answer:
6. In what way do the laws of returns to scale influence the long run supply curve of industry?
āĻāĻĻ্āϝোāĻā§° āĻĻীā§°্āĻāĻŽ্āϝাāĻĻী āϝোāĻাāύ āĻŦāĻ্ā§°āĻ āĻĒ্ā§°āĻাā§ąিāϤ āĻā§°িāĻŦāϞৈ āϞাāĻā§° āĻāĻāύāĻŦোā§°ে āĻেāύেāϧ⧰āĻŖে āĻĒ্ā§°āĻাā§ąিāϤ āĻā§°ে?
Answer:
7. Explain clearly the concept of optimum firm.
āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻĢাā§°্āĻŽā§° āϧাā§°āĻŖাāĻো āϏ্āĻĒāώ্āĻāĻাā§ąে āĻŦā§°্āĻŖāύা āĻā§°া।
Answer:
Very long Answer Type Questions
1. What is meant by equilibrium of a firm? How can it be determined through total revenue-total cost approach?
āĻĢাā§°্āĻŽ āĻāĻাā§° āϏāύ্āϤুāϞāύ⧰ āĻ ā§°্āĻĨ āĻি? āĻŽুāĻ ā§°াāĻāĻš-āĻŽুāĻ āĻŦ্āϝāϝ় āĻĒāĻĻ্āϧāϤিā§° āĻā§°িāϝ়āϤে āĻāϝ়াāĻ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°িāĻŦ āĻĒাā§°ি?
Answer:
2. Determine the short-run equilibrium of a firm and industry.
āĻĢাā§°্āĻŽ āĻā§°ু āĻāĻĻ্āϝোāĻ āĻāĻাā§° āĻāĻŽু-āĻূā§°্āĻŖ-āĻŦিāĻূā§°্āĻŖ āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āĻā§°া।
Answer:
3. How will you determine the long run equilibrium of firm and industry?
āĻāĻĒুāύি āĻĻৃāĻĸ় āĻā§°ু āĻāĻĻ্āϝোāĻā§° āĻĻীā§°্āĻāĻŽ্āϝাāĻĻী āϏāύ্āϤুāϞāύ āĻেāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āĻā§°িāĻŦ?
Answer:
4. How can you derive the short run supply curve of industry?
āĻāĻĒুāύি āĻāĻĻ্āϝোāĻā§° āĻāĻŽ āϏāĻŽāϝ়ā§° āϝোāĻাāύ āĻŦāĻ্ā§° āĻেāύেāĻৈ āĻāĻšā§°āĻŖ āĻā§°িāĻŦ āĻĒাā§°ে?
Answer:
5. Derive the long run supply curve of industry under the perfectly competitive conditions.
āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻিāϤাāĻŽূāϞāĻ āĻĒā§°িāϏ্āĻĨিāϤিāϤ āĻāĻĻ্āϝোāĻā§° āĻĻীā§°্āĻāĻŽ্āϝাāĻĻী āϝোāĻাāύ āĻŦāĻ্ā§° āĻāĻšā§°āĻŖ āĻā§°া।
Answer:
6. It is only when the size of firm is optimum that there is ideal allocation of resources. Explain.
āϝেāϤিāϝ়া āĻĢাā§°্āĻŽā§° āĻāĻাā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻšāϝ় āϤেāϤিāϝ়াāĻšে āϏāĻŽ্āĻĒāĻĻā§° āĻāĻĻā§°্āĻļ āĻā§ąāĻŖ্āĻāύ āĻĨাāĻে। āĻŦ্āϝাāĻ্āϝা āĻā§°া।
Answer: