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The necessary condition for equilibrium position of a firm is:

Profit is maximum when:

A.	Distance between TR and TC is maximum	B.	Distance between AR and AC is maximum
C.	Distance between MR and MC is maximum	D.	None of these

Profit is maximum when:

A.	Slope of MC and MR is the same	B.	Slope of TC and TR is the same
C.	Slope of AC and AR is the same	D.	None of these

Profit is maximum when:

A.	TC and TR curves are parallel	B.	MC and MR curves are parallel
C.	AC and AR curves are parallel	D.	None of these

At the point of equilibrium of firm (under perfect competition):

A.	MC curve must be rising	B.	MC curve must be falling
C.	MR curve must be rising	D.	None of these

Normal profit is:

A.	Part of total cost	B.	Part of economic profit
C.	Total revenue minus total cost	D.	Total revenue minus implicit cost

Economic profit is:

A.	Part of total cost	B.	Total revenue minus total cost
C.	Total revenue minus explicit cost	D.	Total variable cost minus total fixed cost

A firm earns economic profit when total profit exceeds:

A.	Normal profit	B.	Implicit costs
C.	Explicit costs	D.	Variable costs

The basic goal of a firm is to:

A.	Maximize revenues	B.	Maximize welfare of its employees
C.	Maximize profit	D.	Maximize output

10.

A firm's MR exceeds its MC, maximum profit rule requires that firm to:

A.	Increase in output in both perfect and imperfect competition	B.	Increase in perfect competition but not necessarily in imperfect competition
C.	Increase in output in imperfect but not necessarily in perfect competition	D.	Decrease in output in both perfect and imperfect competition