MH SET 2025 Paper 2 Economics Question Paper (15-Jun-2025)

Question 1

Why does a firm under perfect competition continue to operate in the long run despite earning only normal/zero profits ?

Accepted Answer

The opportunity cost of the self- owned factors is already being recovered by the firm in the long run

Answer

The firm operates at socially optimum level of output in the long run

Answer

The firm achieves maximum productive efficiency in the long run

Answer

All the firms are operating under identical cost conditions in the long run Economics Paper II II Time Allowed : 120 Minutes] [Maximum Marks : 200 Note : This Paper contains Hundred (100) multiple choice questions. Each question carrying Two (2) marks. Attempt All questions. (100) (2)

Question 2

What is the short run supply curve of a firm in a perfectly competitive market ?

Accepted Answer

The part of the marginal cost curve that lies above the average variable cost curve

Answer

The part of the marginal cost curve that lies above the average cost curve

Answer

The part of the marginal cost curve that lies above the average fixed cost curve

Answer

The part of the average variable cost curve that lies above the marginal cost curve

Question 3

When the Total Product (TP) is maximum, the Average Product (AP) is _____ and the Marginal Product (MP) is _____ .

Accepted Answer

Decreasing, zero

Answer

maximum, minimum

Answer

minimum, maximum

Answer

Zero, decreasing

Question 4

According to Bergson-Samuelson social welfare function approach, social welfare is maximized when _____ .

Accepted Answer

The social indifference curve is tangent to the utility possibility curve

Answer

The social indifference curve intersects the utility possibility curve

Answer

The social indifference curve is tangent to the production possibility curve

Answer

The social indifference curve intersects the production possibility curve

Question 5

To maintain price leadership, a dominant firm must ensure that _____ .

Accepted Answer

the small firms do not produce more or less than the level agreed upon market sharing agreement

Answer

it does not charge a price higher than the market price

Answer

the small firms do not improve the quality of the product

Answer

the small firms do not introduce innovations

MH SET 2025 Paper 2 Economics Question Paper (15-Jun-2025)

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