Question 1

Cost of advertisement and salesmanship is called:

Accepted Answer

A) sales cost 
B) selling cost 
C) dual price 
D) none of these 
A) sales cost 
B) selling cost 
C) dual price 
D) none of these B

Question 2

A firm under Perfect Competition is a:

Accepted Answer

A) price maker 
B) price taker 
C) monopolist 
D) none of these 
A) price maker 
B) price taker 
C) monopolist 
D) none of these B

Question 3

Selling cost is a feature of :

Accepted Answer

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

Question 4

The supply curve of the input that a firm faces under a perfectly competitive market is

Accepted Answer

A) downward sloping 
B) horizontal supply curve 
C) upward sloping 
D) none of the above 
A) downward sloping 
B) horizontal supply curve 
C) upward sloping 
D) none of the above

Question 5

Oligopoly is characterized by:

Accepted Answer

A) a few sellers 
B) one seller 
C) large sellers 
D) all of these 
A) a few sellers 
B) one seller 
C) large sellers 
D) all of these

Question 6

The price at which the demand and supply are equal is called:

Accepted Answer

A) normal price 
B) support price 
C) equilibrium price 
D) fair price 
A) normal price 
B) support price 
C) equilibrium price 
D) fair price

Question 7

The equilibrium level of output for a perfectly competitive marketis

Accepted Answer

A) mc = ac 
B) mc = mr 
C) tc = tr 
D) none of the above 
A) mc = ac 
B) mc = mr 
C) tc = tr 
D) none of the above

Question 8

Match the followingA B(i). Demand for inputs Hall and Hitch(ii). Oligopoly Single buyer(iii). Kinked demand theory Cartels(iv). Monopsony Derived demand Codes;

Accepted Answer

A) (i) (ii) (iii) (iv) 
B) (i) (iii) (ii) (iv) 
C) (iv) (iii) (ii) (i) 
D) (iv) (iii) (i) (ii) 
A) (i) (ii) (iii) (iv) 
B) (i) (iii) (ii) (iv) 
C) (iv) (iii) (ii) (i) 
D) (iv) (iii) (i) (ii)

Question 9

Perfect competition is a market situation under which a commodity is sold at:

Accepted Answer

A) uniform price 
B) different price 
C) higher price 
D) lower price 
A) uniform price 
B) different price 
C) higher price 
D) lower price

Question 10

When there are only two sellers, the market is called as:

Accepted Answer

A) oligopoly 
B) monopsony 
C) duopoly 
D) bilateral monopoly 
A) oligopoly 
B) monopsony 
C) duopoly 
D) bilateral monopoly

Question 11

The demand curve of a firm under perfect competition is :

Accepted Answer

A) inelastic 
B) perfectly inelastic 
C) infinitely elastic 
D) unitary elastic 
A) inelastic 
B) perfectly inelastic 
C) infinitely elastic 
D) unitary elastic

Question 12

Product differentiation is a characteristic of:

Accepted Answer

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

Question 13

If an oligopolist incurs losses in the short run, then in the long run

Accepted Answer

A) the oligopolist will go out of business 
B) the oligopolist will stay in business 
C) the oligopolist will break-even 
D) any of the above 
A) the oligopolist will go out of business 
B) the oligopolist will stay in business 
C) the oligopolist will break-even 
D) any of the above

Question 14

The supply curve of an input that a firm faces under an imperfectly competitive market is

Accepted Answer

A) downward sloping 
B) horizontal supply curve 
C) upward sloping 
D) none of the above 
A) downward sloping 
B) horizontal supply curve 
C) upward sloping 
D) none of the above

Question 15

The price of a commodity under the perfect competition is determined by:

Accepted Answer

A) buyer 
B) seller 
C) firm 
D) market forces 
A) buyer 
B) seller 
C) firm 
D) market forces

Question 16

The term 'monopsony' refers to

Accepted Answer

A) a single seller 
B) a single buyer 
C) a single buyer and a single seller 
D) none of the above 
A) a single seller 
B) a single buyer 
C) a single buyer and a single seller 
D) none of the above

Question 17

Let labour is the only variable input, a monopsonist maximizes his or her profit when

Accepted Answer

A) mpl = mel 
B) mpl  mpl 
D) none of the above 
A) mpl = mel 
B) mpl  mpl 
D) none of the above

Question 18

Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stabilityReason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions

Accepted Answer

A) (a) is true but (r) is false. 
B) both (a) and (r) are false 
C) both (a) and (r) are true and (r) is the correct explanation of (a) 
D) both (a) and (r) are true but (r) is not the correct explanation of(a) 
A) (a) is true but (r) is false. 
B) both (a) and (r) are false 
C) both (a) and (r) are true and (r) is the correct explanation of (a) 
D) both (a) and (r) are true but (r) is not the correct explanation of(a)

Question 19

If the hourly wage is Rs.10, and the firm produces 5 additional units of the commodity with an additional hour of labour time, then marginal cost is

Accepted Answer

A) 0.5 
B) 2 
C) 5 
D) 10 
A) 0.5 
B) 2 
C) 5 
D) 10

Question 20

To minimize cost of production at any level of output the monopsonist should continue to substitute labour and capital until

Accepted Answer

A) mel . mpl = mek . mpk 
B) mel / mpl = mek / mpk 
C) mel . mpl > mek . mpk 
D) mel / mpl > mek / mpk 
A) mel . mpl = mek . mpk 
B) mel / mpl = mek / mpk 
C) mel . mpl > mek . mpk 
D) mel / mpl > mek / mpk

Cost of advertisement and salesmanship is called:

A firm under Perfect Competition is a:

Selling cost is a feature of :

The supply curve of the input that a firm faces under a perfectly competitive market is

Oligopoly is characterized by:

The price at which the demand and supply are equal is called:

The equilibrium level of output for a perfectly competitive marketis

Match the followingA B(i). Demand for inputs Hall and Hitch(ii). Oligopoly Single buyer(iii). Kinked demand theory Cartels(iv). Monopsony Derived demand Codes;

Perfect competition is a market situation under which a commodity is sold at:

When there are only two sellers, the market is called as:

The demand curve of a firm under perfect competition is :

Product differentiation is a characteristic of:

If an oligopolist incurs losses in the short run, then in the long run

The supply curve of an input that a firm faces under an imperfectly competitive market is

The price of a commodity under the perfect competition is determined by:

The term 'monopsony' refers to

Let labour is the only variable input, a monopsonist maximizes his or her profit when

Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stabilityReason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions

If the hourly wage is Rs.10, and the firm produces 5 additional units of the commodity with an additional hour of labour time, then marginal cost is

To minimize cost of production at any level of output the monopsonist should continue to substitute labour and capital until

Understanding Perfect Competition in Economics

Price Determination and Market Structures

Monopolistic Competition and Monopoly

Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

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Exam 5: Microeconomics Concepts and Markets

Cost of advertisement and salesmanship is called:

A firm under Perfect Competition is a:

Selling cost is a feature of :

The supply curve of the input that a firm faces under a perfectly competitive market is

Oligopoly is characterized by:

The price at which the demand and supply are equal is called:

The equilibrium level of output for a perfectly competitive marketis

Match the followingA B(i). Demand for inputs Hall and Hitch(ii). Oligopoly Single buyer(iii). Kinked demand theory Cartels(iv). Monopsony Derived demand Codes;

Perfect competition is a market situation under which a commodity is sold at:

When there are only two sellers, the market is called as:

The demand curve of a firm under perfect competition is :

Product differentiation is a characteristic of:

If an oligopolist incurs losses in the short run, then in the long run

The supply curve of an input that a firm faces under an imperfectly competitive market is

The price of a commodity under the perfect competition is determined by:

The term 'monopsony' refers to

Let labour is the only variable input, a monopsonist maximizes his or her profit when

Assertion (A) Many oligopolistic industries exhibit an appreciable degree of Price rigidity or stabilityReason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions

If the hourly wage is Rs.10, and the firm produces 5 additional units of the commodity with an additional hour of labour time, then marginal cost is

To minimize cost of production at any level of output the monopsonist should continue to substitute labour and capital until

Understanding Perfect Competition in Economics

Price Determination and Market Structures

Monopolistic Competition and Monopoly

Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

Filters