Deck 6: Market Structures and Equilibrium in Economics

Question 1

An international price discrimination

A)Dumping
B)Bundling
C)Discounting
D)Off loading

Answer 1

Dumping

Question 2

The market structure which has large number of sellers selling differentiated product is called

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

Answer 2

Perfect competition

Question 3

The market structure which number of sellers is small with interdependence is called

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

Answer 3

Oligopoly

Question 4

The condition of short run equilibrium under monopolistic competition is

A)MC=MR
B)AC=MR
C)AC=AR
D)AR=MR

Question 5

Kinked demand curve explain which of the following features of oligopoly

A)Selling cost
B)Price rigidity
C)Non price competition
D)Product differentiation

Question 6

Demand curve of a firm under monopolistic competition is

A)Parallel to X axis
B)Parallel to Y axis
C)Downward slopping
D)Upward slopping

Question 7

Which of the following is not a feature of monopolistic competition?

A)Homogenous product
B)Large number of firms
C)Freedom to entry and exit
D)Differentiated product

Question 8

In the long run, a monopolistically competitive firm earn

A)Abnormal profit
B)loss
C)Normal profit
D)Differentiated profit

Question 9

In the short run, a monopolistically competitive firm can have

A)Abnormal profit
B)loss
C)Normal profit
D)Any of the above are possible

Question 10

Selling cost is a feature of

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

Question 11

The concept of group equilibrium is related to

A)Paul M sweezy
B)Joan robinson
C)E H Chamberline
D)E L Edgeworth

Question 12

The concept of kinked demand curve is related to

A)Paul M sweezy
B)Joan robinson
C)E H Chamberline
D)E L Edgeworth

Question 13

Refrigerator company is an example of

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

Question 14

Cross elasticity of demand under monopolistic competition is?

A)Zero
B)Highly elastic
C)Highly inelastic
D)infinite

Question 15

The concept of group equilibrium is related to

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

Question 16

Excess capacity is a feature of equilibrium under

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

Question 17

Which of the following is an important form collusive oligopoly

A)Bilateral monopoly
B)Monopoly
C)cartel
D)Kinked Oligopoly

Question 18

OPEC is an example of

A)Bilateral monopoly
B)Monopoly
C)cartel
D)Kinked Oligopoly

Question 19

Comparing a monopoly and a competitive firm, the monopolist will

A)produce less at a lower price
B)produce more at a lower price
C)produce less at a higher price
D)produce less at a lower price.

Question 20

A natural monopoly has a declining ________ over a large range of output

A)long run marginal cost
B)short run marginal cost
C)long run average cost
D)long run marginal cost.

Question 21

Which form of monopoly control is most advantageous to consumer?

A)price controls
B)quantity controls
C)lump sum tax
D)all the above

Question 22

The market structure Perfect mobility of factors and products is called

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

Question 23

The market structure with Perfect knowledge is called

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

Question 24

The condition of perfect competition is fulfilled when

A)Sellers are large in number
B)Buyers are large in number
C)Commodity produced is homogenous
D)All the above

Question 25

The following are conditions of perfect competition except

A)Sellers are large in number
B)Buyers are large in number
C)Commodity produced is homogenous
D)Commodity produced is differentiated