Question 1

In a Perfect competitive market

Accepted Answer

A) Firm is the price giver and the industry is a price taker 
B) Firm is the price taker and the industry is a price giver 
C) Both are price makers 
D) Both are price takers 
A) Firm is the price giver and the industry is a price taker 
B) Firm is the price taker and the industry is a price giver 
C) Both are price makers 
D) Both are price takers D

Question 2

Under perfect market conditions the individual firm in the industry has ------------------- control over the price of the product.

Accepted Answer

A) Some 
B) Full 
C) No 
D) None of the above 
A) Some 
B) Full 
C) No 
D) None of the above C

Question 3

The marker structure with Perfect mobility of factors and products is called

Accepted Answer

A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly 
A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly A

Question 4

The short-run supply curve of a perfectly competitive firm

Accepted Answer

A) is equal to that portion of the short-run marginal cost curve that is above the average variable cost curve 
B) is equal to that portion of the short-run marginal cost curve that is above the average total cost curve 
C) is equal to that portion of the short-run average total cost curve that is above the average variable cost curve 
D) None of the above is correct 
A) is equal to that portion of the short-run marginal cost curve that is above the average variable cost curve 
B) is equal to that portion of the short-run marginal cost curve that is above the average total cost curve 
C) is equal to that portion of the short-run average total cost curve that is above the average variable cost curve 
D) None of the above is correct

Question 5

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price is equal to average total cost, then the firm

Accepted Answer

A) should shut down 
B) should decrease output, but should not shut down 
C) should increase output 
D) None of the above is correct 
A) should shut down 
B) should decrease output, but should not shut down 
C) should increase output 
D) None of the above is correct

Question 6

Lerner Index is a measure of:

Accepted Answer

A) Elasticity of demand 
B) Monopoly power 
C) Inequality 
A) Elasticity of demand 
B) Monopoly power 
C) Inequality

Question 7

Which of the following is a characteristic of monopolistic competition?

Accepted Answer

A) Few sellers 
B) A differentiated product 
C) Easy entry into and exit from the industry 
D) All of the above 
A) Few sellers 
B) A differentiated product 
C) Easy entry into and exit from the industry 
D) All of the above

Question 8

The marker structure which have large number of sellers selling differentiated product is called

Accepted Answer

A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly 
A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly

Question 9

Marginal revenue is equal to price for which one of the following types of market structure?

Accepted Answer

A) Monopoly 
B) Perfect competition 
C) Monopolistic competition 
D) Oligopoly 
A) Monopoly 
B) Perfect competition 
C) Monopolistic competition 
D) Oligopoly

Question 10

The marker structure which have very large number of sellers selling Identical products is called

Accepted Answer

A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly 
A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly

Question 11

Individual firm has no control on the price of the commodity in the market is a condition of

Accepted Answer

A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Bilateral monopoly 
A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Bilateral monopoly

Question 12

When a perfectly competitive industry is in long-run equilibrium, all firms in the industry

Accepted Answer

A) earn zero economic profits 
B) produce a level of output where short-run marginal cost is equal to short-run average total cost 
C) produce a level of output where long-run marginal cost is equal to long-run average cost 
D) All of the above are correct 
A) earn zero economic profits 
B) produce a level of output where short-run marginal cost is equal to short-run average total cost 
C) produce a level of output where long-run marginal cost is equal to long-run average cost 
D) All of the above are correct

Question 13

A monopolist produces 14,000 units of output and charges Rs.14 per unit. Its marginal revenue is Rs.8, its marginal cost is Rs.7 and rising, its average total cost is Rs.10, and its average variable cost is Rs.9. The monopolist should

Accepted Answer

A) increase curve output, which will result in an increase in the firm\s positive economic profit 
B) increase output, which will reduce the firm\s economic losses 
C) shut down, which will reduce the firm\s economic losses 
D) decrease output, which will result in an increase in the firm\s positive economic 
A) increase curve output, which will result in an increase in the firm\s positive economic profit 
B) increase output, which will reduce the firm\s economic losses 
C) shut down, which will reduce the firm\s economic losses 
D) decrease output, which will result in an increase in the firm\s positive economic

Question 14

Third degree price discrimination occurs when the monopolist charges different prices for the same commodity in different

Accepted Answer

A) Markets 
B) places 
C) continents 
D) countries 
A) Markets 
B) places 
C) continents 
D) countries

Question 15

Which of the following is a criticism of the theory of monopolistic competition?

Accepted Answer

A) It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it 
B) When product differentiation is slight, each firm\s demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution 
C) When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, then the oligopoly solution provides an adequate approximation to the monopolistically competitive solution 
D) All of the above are correct 
A) It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it 
B) When product differentiation is slight, each firm\s demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution 
C) When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, then the oligopoly solution provides an adequate approximation to the monopolistically competitive solution 
D) All of the above are correct

Question 16

The large number of firms producing the same commodity ensure that the individual firm has no control over

Accepted Answer

A) Price of the commodity 
B) The quantity of the commodity 
C) Both of the above 
D) None of the above 
A) Price of the commodity 
B) The quantity of the commodity 
C) Both of the above 
D) None of the above

Question 17

The marker structure with Perfect knowledge is called

Accepted Answer

A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly 
A) Perfect competition 
B) Monopoly 
C) Monopolistic competition 
D) Oligopoly

Question 18

The dual pricing system of charging high price during peak time and low price during of peak time is called

Accepted Answer

A) Double pricing 
B) Dual pricing 
C) kinked pricing 
D) peak load pricing 
A) Double pricing 
B) Dual pricing 
C) kinked pricing 
D) peak load pricing

In a Perfect competitive market

Under perfect market conditions the individual firm in the industry has ------------------- control over the price of the product.

The marker structure with Perfect mobility of factors and products is called

The short-run supply curve of a perfectly competitive firm

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price is equal to average total cost, then the firm

Lerner Index is a measure of:

Which of the following is a characteristic of monopolistic competition?

The marker structure which have large number of sellers selling differentiated product is called

Marginal revenue is equal to price for which one of the following types of market structure?

The marker structure which have very large number of sellers selling Identical products is called

Individual firm has no control on the price of the commodity in the market is a condition of

When a perfectly competitive industry is in long-run equilibrium, all firms in the industry

A monopolist produces 14,000 units of output and charges Rs.14 per unit. Its marginal revenue is Rs.8, its marginal cost is Rs.7 and rising, its average total cost is Rs.10, and its average variable cost is Rs.9. The monopolist should

Third degree price discrimination occurs when the monopolist charges different prices for the same commodity in different

Which of the following is a criticism of the theory of monopolistic competition?

The large number of firms producing the same commodity ensure that the individual firm has no control over

The marker structure with Perfect knowledge is called

The dual pricing system of charging high price during peak time and low price during of peak time is called

Market Models, Structures and Competition

Principles of Market Structures and Microeconomic Theory

Market Power and Pricing Strategies

Market Structures and Pricing

Monopoly and Perfect Competition

Market Structures and Equilibrium in Economics

Market Structures and Perfect Competition

Money and Market Structures

Economy and Inflation

Macroeconomic Policies and Business Cycles

Economics and Market Structures

Competitive and Monopolistic Markets

The Economics of Monopolistic Competition and Monopoly

Monopoly, Price Discrimination, and Oligopoly: Exploring Market Structures and Strategies

Market Structures and Equilibrium

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Exam 8: Understanding Market Structures and Firm Behavior

In a Perfect competitive market

Under perfect market conditions the individual firm in the industry has ------------------- control over the price of the product.

The marker structure with Perfect mobility of factors and products is called

The short-run supply curve of a perfectly competitive firm

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price is equal to average total cost, then the firm

Lerner Index is a measure of:

Which of the following is a characteristic of monopolistic competition?

The marker structure which have large number of sellers selling differentiated product is called

Marginal revenue is equal to price for which one of the following types of market structure?

The marker structure which have very large number of sellers selling Identical products is called

Individual firm has no control on the price of the commodity in the market is a condition of

When a perfectly competitive industry is in long-run equilibrium, all firms in the industry

A monopolist produces 14,000 units of output and charges Rs.14 per unit. Its marginal revenue is Rs.8, its marginal cost is Rs.7 and rising, its average total cost is Rs.10, and its average variable cost is Rs.9. The monopolist should

Third degree price discrimination occurs when the monopolist charges different prices for the same commodity in different

Which of the following is a criticism of the theory of monopolistic competition?

The large number of firms producing the same commodity ensure that the individual firm has no control over

The marker structure with Perfect knowledge is called

The dual pricing system of charging high price during peak time and low price during of peak time is called

Market Models, Structures and Competition

Principles of Market Structures and Microeconomic Theory

Market Power and Pricing Strategies

Market Structures and Pricing

Monopoly and Perfect Competition

Market Structures and Equilibrium in Economics

Market Structures and Perfect Competition

Money and Market Structures

Economy and Inflation

Macroeconomic Policies and Business Cycles

Economics and Market Structures

Competitive and Monopolistic Markets

The Economics of Monopolistic Competition and Monopoly

Monopoly, Price Discrimination, and Oligopoly: Exploring Market Structures and Strategies

Market Structures and Equilibrium

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