Start learning →

Bihar Board Class 12 (Arts) Theory of Consumer Behaviour & Demand — practice questions

Explore 192 free Theory of Consumer Behaviour & Demand questions in Bihar Board Class 12 (Arts) Economics. Open each question or exercise to read its content, reference answers and available explanation.

Practise Theory of Consumer Behaviour & Demand with Quill →

Theory of Consumer Behaviour & Demand questions and exercises with answers

Showing questions 1–30 of 192.

In a monopoly, the firm and the industry are:Read the answer and worked solution →Interdependent oligopolists are generally reluctant to:Read the answer and worked solution →Oligopolists can earn abnormal profits in the long run mainly because of:Read the answer and worked solution →Who published The Economics of Imperfect Competition in 1933?Read the answer and worked solution →Monopolistic competition produces what kind of products?Read the answer and worked solution →What holds for entry and exit under perfect competition?Read the answer and worked solution →What does perfect information imply for buyers and sellers?Read the answer and worked solution →What is the most distinguishing behaviour of a firm under perfect competition?Read the answer and worked solution →A price-taking firm sets its price above the market price. What happens?Read the answer and worked solution →Total revenue of a price-taking firm is equal to what?Read the answer and worked solution →The market price of a box of candles is Rs 10. What is total revenue from selling 7 boxes?Read the answer and worked solution →What is the shape of the total revenue curve of a price-taking firm?Read the answer and worked solution →For a price-taking firm, average revenue equals what?Read the answer and worked solution →What is the horizontal line showing market price against firm output called?Read the answer and worked solution →What is the price elasticity of demand facing a firm under perfect competition?Read the answer and worked solution →Marginal revenue is the increase in total revenue for what change in output?Read the answer and worked solution →Which relation holds for a perfectly competitive firm?Read the answer and worked solution →Total revenue from 2 boxes is Rs 20 and from 3 boxes is Rs 30. What is marginal revenue of the third box?Read the answer and worked solution →Profit is the difference between which two quantities?Read the answer and worked solution →Total revenue is Rs 500 and total cost is Rs 420. What is profit?Read the answer and worked solution →When MR exceeds MC, what happens to profit if output expands?Read the answer and worked solution →For a perfectly competitive firm, profit is maximum where price equals what?Read the answer and worked solution →The second condition for profit maximisation requires marginal cost to be what?Read the answer and worked solution →In the short run, a firm continues to produce only if price is at least what?Read the answer and worked solution →A firm with price below AVC in the short run produces zero output. What is its profit?Read the answer and worked solution →A firm's supply is the quantity it chooses to sell at a given price, given technology and what else?Read the answer and worked solution →A schedule of quantities a firm sells at various prices is called what?Read the answer and worked solution →The short run supply curve of a firm is the rising part of which curve above minimum AVC?Read the answer and worked solution →What is a firm's short run output when price is below minimum AVC?Read the answer and worked solution →The short run shut down point lies at the minimum of which curve?Read the answer and worked solution →

Worked practice questions

In a monopoly, the firm and the industry are:

  1. Completely separate
  2. Rival competitors
  3. Essentially the same
  4. Opposed in aims
Show answer and solution

Correct answer: C. Essentially the same

One company serves the whole market, so for practical purposes the company is the industry.

Open this question →

Interdependent oligopolists are generally reluctant to:

  1. Advertise
  2. Hire workers
  3. Merge ever
  4. Change prices
Show answer and solution

Correct answer: D. Change prices

Rivals notice and respond to price changes, so a firm hesitates to raise or lower its price.

Open this question →

Oligopolists can earn abnormal profits in the long run mainly because of:

  1. High entry barriers
  2. Free market entry
  3. Perfect knowledge
  4. Homogeneous goods
Show answer and solution

Correct answer: A. High entry barriers

High barriers keep sideline firms from entering to capture the excess profits.

Open this question →

How to practise

  1. Choose a Theory of Consumer Behaviour & Demand question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Theory of Consumer Behaviour & Demand practice for Bihar Board Class 12 (Arts). Read explanations as you go. No signup form needed to start.

Practise Theory of Consumer Behaviour & Demand →

More Economics topics

Determination of Income and EmploymentNational Income AccountingOpen Economy MacroeconomicsGovernment Budget and the EconomyMoney and BankingMacroeconomics: Income, Budget & BankingCurrent Challenges Facing Indian EconomyIndian Economy & Economic Development