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Chapter 13

 Equilibrium of Perfectly Competitive Firm and Industry

Multiple Choice Questions

1. Perfectly competitive stable equilibrium of the short period is determined when

āĻ•āĻŽ āϏāĻŽāϝ়ā§° āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাāĻŽূāϞāĻ• āϏ্āĻĨিā§° āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ় āĻ•েāϤিāϝ়া

(a) MR=MC

āĻāĻŽāφ⧰=āĻāĻŽāϚি

(b) MC curve slopes positively

āĻāĻŽāϚি āĻŦāĻ•্ā§° āχāϤিāĻŦাāϚāĻ•āĻ­াā§ąে āĻĸাāϞ

(c) both of the above are true

āĻ“āĻĒā§°োāĻ•্āϤ āĻĻুāϝ়োāϟা āϏঁāϚা

Answer: (c) both of the above are true (āĻ“āĻĒā§°োāĻ•্āϤ āĻĻুāϝ়োāϟা āϏঁāϚা)।

2. The short run shut-down point of the firm occurs when

āĻĢাā§°্āĻŽā§° āϚāĻŽু ā§°াāĻŖ āĻļ্āĻŦāϟ-āĻĄাāωāύ āĻĒāχāĻŖ্āϟ āϟো āϤেāϤিāϝ়া āĻšāϝ় āϝেāϤিāϝ়া

(a) Price=Min. AC

āĻŽূāϞ্āϝ=āύ্āϝূāύāϤāĻŽ। āĻāϚি

(b) Price=Min. AVC

āĻŽূāϞ্āϝ=āĻŽিāύ। āĻāĻ­িāϚি

(c) Price= Min. MC

āĻŽূāϞ্āϝ= āύ্āϝূāύāϤāĻŽ āĻāĻŽāϚি

Answer: (b) Price=Min. AVC (āĻŽূāϞ্āϝ=āĻŽিāύ। āĻāĻ­িāϚি)।

3. The break-even point occurs when 

āĻŦ্ā§°েāĻ•-āχāĻ­েāύ āĻĒāχāĻŖ্āϟ āϟো āϤেāϤিāϝ়া āĻšāϝ় āϝেāϤিāϝ়া 

(a) TR>TC

āϟিāφ⧰>āϟিāϚি  

(b) TR=TC

āϟিāφ⧰=āϟিāϚি

(c) TR<TC

āϟিāφ⧰<āϟিāϚি

Answer: (b) TR=TC (āϟিāφ⧰=āϟিāϚি)।

4. The size of firm is optimum when

āĻĢাā§°্āĻŽā§° āφāĻ•াā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻšāϝ় āϝেāϤিāϝ়া  

(a) AC is falling 

āĻāϚি āĻĒā§°ি āφāĻ›ে 

(b) AC is rising 

āĻāϚি āĻŦাāĻĸ়ি āφāĻ›ে 

(c) AC is the minimum

āĻāϚি āĻšৈāĻ›ে āύিāĻŽ্āύāϤāĻŽ

Answer: (c) AC is the minimum (āĻāϚি āĻšৈāĻ›ে āύিāĻŽ্āύāϤāĻŽ)।

Short Answer Type Questions

1. what are conditions for firm's equilibrium in short period and long period?

āĻ•āĻŽ āϏāĻŽāϝ় āφ⧰ু āĻĻীāϘāϞীāϝ়া āϏāĻŽāϝ়āϤ āĻĢাā§°্āĻŽā§° āϏāύ্āϤুāϞāύ⧰ āĻŦাāĻŦে āϚ⧰্āϤāĻŦোā§° āĻ•ি?

Answer:

2. Differentiate between the equilibrium of firm and the equilibrium of industry.

āĻĻৃāĻĸ়āϤাā§° āϏāύ্āϤুāϞāύ āφ⧰ু āωāĻĻ্āϝোāĻ—ā§° āϏāύ্āϤুāϞāύ⧰ āĻŽাāϜāϤ āĻĒাā§°্āĻĨāĻ•্āϝ āϕ⧰া।

Answer:

3. How is short run equilibrium of firms determined under perfect competition?

āύিāĻ–ুঁāϤ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ āĻĒ্ā§°āϤিāώ্āĻ াāύāĻŦোā§°ā§° āĻ•āĻŽ āϏāĻŽāϝ়ā§° āϏāύ্āϤুāϞāύ āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ়?

Answer:

4. How is the short run shut-down point of a competitive firm determined?

āĻĒ্ā§°āϤিāϝোāĻ—িāϤাāĻŽূāϞāĻ• āĻĢাā§°্āĻŽ āĻāϟাā§° āϚāĻŽু ā§°াāĻŖ āĻļ্āĻŦāϟ-āĻĄাāωāύ āĻĒāχāĻŖ্āϟ āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ়?

Answer:

5. How is the optimum point of a firm determined?

āĻāϟা āĻĢাā§°্āĻŽā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻŦিāύ্āĻĻু āĻ•েāύেāĻ•ৈ āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ়?

Answer:

Long Answer Type Questions

1. Explain the short run equilibrium of a firm and industry.

āĻĢাā§°্āĻŽ āφ⧰ু āωāĻĻ্āϝোāĻ— āĻāϟাā§° āϚāĻŽু ā§°াāĻŖā§° āϏāύ্āϤুāϞāύ āĻŦā§°্āĻŖāύা āϕ⧰া।

Answer:

2. How is the equilibrium of firm and industry determined in the long run?

āĻĻীā§°্āϘāĻŽ্āϝাāĻĻী āϏāĻŽāϝ়āϤ āĻĻৃāĻĸ় āφ⧰ু āωāĻĻ্āϝোāĻ—ā§° āϏāύ্āϤুāϞāύ āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ়?

Answer:

3. How is short run shut-down point of a perfectly competitive firm determined.

āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাāĻŽূāϞāĻ• āĻĢাā§°্āĻŽ āĻāϟাā§° āϚāĻŽু ā§°াāĻŖ āĻļ্āĻŦāϟ-āĻĄাāωāύ āĻĒāχāĻŖ্āϟ āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰া āĻšāϝ়।

Answer:

4. Determine the long run equilibrium of firm and industry under perfect competition.

āύিāĻ–ুঁāϤ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ āĻĻৃāĻĸ় āφ⧰ু āωāĻĻ্āϝোāĻ—ā§° āĻĻীā§°্āϘāĻŽ্āϝাāĻĻী āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:

5. Derive the short run supply curve of industry under perfect competition. 

āύিāĻ–ুঁāϤ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাā§° āĻ…āϧীāύāϤ āωāĻĻ্āϝোāĻ—ā§° āϚāĻŽু ā§°াāĻŖā§° āϝোāĻ—াāύ āĻŦāĻ•্ā§° āφāĻšā§°āĻŖ āϕ⧰া। 

Answer:

6. In what way do the laws of returns to scale influence the long run supply curve of industry?

āωāĻĻ্āϝোāĻ—ā§° āĻĻীā§°্āϘāĻŽ্āϝাāĻĻী āϝোāĻ—াāύ āĻŦāĻ•্ā§°āĻ• āĻĒ্ā§°āĻ­াā§ąিāϤ āϕ⧰িāĻŦāϞৈ āϞাāĻ­ā§° āφāχāύāĻŦোā§°ে āĻ•েāύেāϧ⧰āĻŖে āĻĒ্ā§°āĻ­াā§ąিāϤ āϕ⧰ে?

Answer:

7. Explain clearly the concept of optimum firm.

āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻĢাā§°্āĻŽā§° āϧাā§°āĻŖাāϟো āϏ্āĻĒāώ্āϟāĻ­াā§ąে āĻŦā§°্āĻŖāύা āϕ⧰া।

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 āĻāϟাā§° āϏāύ্āϤুāϞāύ⧰ āĻ…ā§°্āĻĨ āĻ•ি? āĻŽুāĻ  ā§°াāϜāĻš-āĻŽুāĻ  āĻŦ্āϝāϝ় āĻĒāĻĻ্āϧāϤিā§° āϜ⧰িāϝ়āϤে āχāϝ়াāĻ• āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰িāĻŦ āĻĒাā§°ি?

Answer:

2. Determine the short-run equilibrium of a firm and industry.

āĻĢাā§°্āĻŽ āφ⧰ু āωāĻĻ্āϝোāĻ— āĻāϟাā§° āϚāĻŽু-āϚূā§°্āĻŖ-āĻŦিāϚূā§°্āĻŖ āϏāύ্āϤুāϞāύ āύিā§°্āϧাā§°āĻŖ āϕ⧰া।

Answer:

3. How will you determine the long run equilibrium of firm and industry?

āφāĻĒুāύি āĻĻৃāĻĸ় āφ⧰ু āωāĻĻ্āϝোāĻ—ā§° āĻĻীā§°্āϘāĻŽ্āϝাāĻĻী āϏāύ্āϤুāϞāύ āĻ•েāύেāĻĻā§°ে āύিā§°্āϧাā§°āĻŖ āϕ⧰িāĻŦ?

Answer:

4. How can you derive the short run supply curve of industry?

āφāĻĒুāύি āωāĻĻ্āϝোāĻ—ā§° āĻ•āĻŽ āϏāĻŽāϝ়ā§° āϝোāĻ—াāύ āĻŦāĻ•্ā§° āĻ•েāύেāĻ•ৈ āφāĻšā§°āĻŖ āϕ⧰িāĻŦ āĻĒাā§°ে?

Answer:

5. Derive the long run supply curve of industry under the perfectly competitive conditions.

āϏāĻŽ্āĻĒূā§°্āĻŖ āĻĒ্ā§°āϤিāϝোāĻ—িāϤাāĻŽূāϞāĻ• āĻĒā§°িāϏ্āĻĨিāϤিāϤ āωāĻĻ্āϝোāĻ—ā§° āĻĻীā§°্āϘāĻŽ্āϝাāĻĻী āϝোāĻ—াāύ āĻŦāĻ•্ā§° āφāĻšā§°āĻŖ āϕ⧰া।

Answer:

6. It is only when the size of firm is optimum that there is ideal allocation of resources. Explain.

āϝেāϤিāϝ়া āĻĢাā§°্āĻŽā§° āφāĻ•াā§° āϏ⧰্āĻŦোāϤ্āϤāĻŽ āĻšāϝ় āϤেāϤিāϝ়াāĻšে āϏāĻŽ্āĻĒāĻĻā§° āφāĻĻā§°্āĻļ āĻ†ā§ąāĻŖ্āϟāύ āĻĨাāĻ•ে। āĻŦ্āϝাāĻ–্āϝা āϕ⧰া।

Answer:  

 


Questions Type-Bhabesh Bora.