Question 1

'Cartels' are example for

Accepted Answer

A)  collusive oligopoly
B)  non-collusive oligopoly
C)  monopsony
D)  none of the above A

Question 2

Under monopoly, the equilibrium price is

Accepted Answer

A)  equal to mc
B)  less than mc
C)  more than mc
D)  equal to ac C

Question 3

The concept of 'Kinked demand curve' is related to

Accepted Answer

A)  monopoly
B)  monopolistic competition
C)  perfect competition
D)  oligopoly D

Question 4

If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree price discrimination

Accepted Answer

A)  will increase his tr and total profit
B)  can increase his tr and profit
C)  cannot increase his tr and profit
D)  will charge different prices in different market

Question 5

A firm practicing price discrimination will be

Accepted Answer

A)  changing qualities of the product
B)  buying from the cheapest market
C)  buying from firms
D)  charging different prices in different markets

Question 6

Who introduced various types of price discrimination

Accepted Answer

A)  alfred marshall
B)  adam smith
C)  a c pigou
D)  j b say

Question 7

Discriminating monopoly is possible if two markets have

Accepted Answer

A)  differing elasticity of demand
B)  differing average cost
C)  same elasticity
D)  different average cost

Question 8

'Group behavior' is a feature of

Accepted Answer

A)  monopoly
B)  oligopoly
C)  perfect competition
D)  monopolistic competition

Question 9

The best level of output for the monopolist is

Accepted Answer

A)  ac is minimum
B)  tc=tr
C)  tr and tc are parallel
D)  tr is maximum

Question 10

Price leadership can be in the form of

Accepted Answer

A)  price leadership by a low cost firm
B)  price leadership by a dominant firm
C)  a barometric price leadership
D)  all of the above

Question 11

A discrimination monopolist charges in a market

Accepted Answer

A)  lower prices if it has lower elasticity
B)  higher prices if it has lower elasticity
C)  lower prices if it has higher elasticity
D)  cannot say

Question 12

The concept of 'Kinked demand curve' was developed by

Accepted Answer

A)  alfred marshal
B)  j r hicks
C)  p m sweezy
D)  a.k sen

Question 13

Under pure monopoly, there will be

Accepted Answer

A)  no distinction between firm and industry
B)  one firm no industry
C)  no firm one industry
D)  very few firms

Question 14

Monopolist will not produce that portion of demand curve where the elasticity of demand

Accepted Answer

A)  equal to unity
B)  less than unity
C)  greater than zero
D)  none of the above

Question 15

Monopsony refers to

Accepted Answer

A)  single seller
B)  a few sellers
C)  single buyer
D)  a few buyers

Question 16

The cross elasticity of demand for the monopolist product is

Accepted Answer

A)  very low
B)  moderate
C)  high
D)  very high

Question 17

Oligopoly is a market situation characterized by

Accepted Answer

A)  large number of buyers and sellers
B)  a single seller
C)  fairly large number of buyers and sellers
D)  a few sellers

Question 18

Which of the following is known as the perfect price discrimination

Accepted Answer

A)  first degree price discrimination
B)  second degree price discrimination
C)  third degree price discrimination
D)  nine of the above

Question 19

A monopolist usually earns

Accepted Answer

A)  economic profit
B)  only normal profit
C)  losses
D)  profit and losses, which are uncertain

Question 20

Selling cost is maximum in the case of

Accepted Answer