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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 16
Q1 | Monopolist can fix
- Both price and output
- Neither price and output
- Either price and output
- None of the above
Q2 | A discrimination monopolist charges in a market
- Lower prices if it has lower elasticity
- Higher prices if it has lower elasticity
- Lower prices if it has higher elasticity
- Cannot say
Q3 | A firm practicing price discrimination will be
- Changing qualities of the product
- Buying from the cheapest market
- Buying from firms
- Charging different prices in different markets
Q4 | The best level of output for the monopolist is
- AC is minimum
- TC=TR
- TR and TC are parallel
- TR is maximum
Q5 | If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree pricediscrimination
- Will increase his TR and total profit
- Can increase his TR and profit
- Cannot increase his TR and profit
- Will charge different prices in different market
Q6 | Under pure monopoly, there will be
- No distinction between firm and industry
- One firm no industry
- No firm one industry
- Very few firms
Q7 | Monopolist will not produce that portion of demand curve where theelasticity of demand
- Equal to unity
- Less than unity
- Greater than zero
- None of the above
Q8 | Under monopoly, the equilibrium price is
- Equal to MC
- Less than MC
- More than MC
- Equal to AC
Q9 | The cross elasticity of demand for the monopolist product is
- Very low
- Moderate
- High
- Very high
Q10 | Which of the following is known as the perfect price discrimination
- First degree price discrimination
- Second degree price discrimination
- Third degree price discrimination
- Nine of the above
Q11 | A monopolist usually earns
- Economic profit
- Only normal profit
- Losses
- Profit and losses, which are uncertain
Q12 | Price discrimination is possible
- Under any market form
- Only under monopoly
- Only under monopolistic competition
- Only in perfect competition
Q13 | Who introduced various types of price discrimination
- Alfred Marshall
- Adam Smith
- A C Pigou
- J B Say
Q14 | Oligopoly is a market situation characterized by
- Large number of buyers and sellers
- A single seller
- Fairly large number of buyers and sellers
- A few sellers
Q15 | Price leadership can be in the form of
- Price leadership by a low cost firm
- Price leadership by a dominant firm
- A barometric price leadership
- All of the above
Q16 | Assertion (A) Many oligopolistic industries exhibit an appreciabledegree of Price rigidity or stability Reason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions
- (A) is true but (R) is false.
- Both (A) and (R) are false
- Both (A) and (R) are true and (R) is the correct explanation of (A)
- Both (A) and (R) are true but (R) is not the correct explanation of (A)
Q17 | The equilibrium level of output for a perfectly competitive marketis
- MC = AC
- MC = MR
- TC = TR
- None of the above
Q18 | The term ‘monopsony’ refers to
- a single seller
- a single buyer
- a single buyer and a single seller
- None of the above
Q19 | In Chamberlin and Kinked demand curve model, the oligoposist
- Recognize their interdependence
- Do not collude
- Tend to keep prices constant
- All of the above
Q20 | If an oligopolist incurs losses in the short run, then in the longrun
- The oligopolist will go out of business
- The oligopolist will stay in business
- The oligopolist will break-even
- Any of the above
Q21 | Existence of large number of buyers and sellers andhomogenous product is a feature of :
- Monopoly
- Duopoly
- Perfect Competition
- Oligopoly
Q22 | Product differentiation is a characteristic of:
- Monopoly
- Perfect Competition
- Monopolistic Competition
- Oligopoly
Q23 | A firm under Perfect Competition is a:
- Price maker
- Price taker
- Monopolist
- None of these
Q24 | Selling cost is a feature of :
- Perfect Competition
- Monopoly
- Monopolistic Competition
- Oligopoly
Q25 | Oligopoly is characterized by:
- A few Sellers
- One seller
- Large Sellers
- All of these