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This set of Micro economics 2 Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics 2 Set 7
Q1 | An international price discrimination
- Dumping
- Bundling
- Discounting
- Off loading
Q2 | The market structure which has large number of sellers selling differentiated product iscalled
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q3 | The market structure which number of sellers is small with interdependence is called
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q4 | The condition of short run equilibrium under monopolistic competition is
- MC=MR
- AC=MR
- AC=AR
- AR=MR
Q5 | Kinked demand curve explain which of the following features of oligopoly
- Selling cost
- Price rigidity
- Non price competition
- Product differentiation
Q6 | Demand curve of a firm under monopolistic competition is
- Parallel to X axis
- Parallel to Y axis
- Downward slopping
- Upward slopping
Q7 | Which of the following is not a feature of monopolistic competition?
- Homogenous product
- Large number of firms
- Freedom to entry and exit
- Differentiated product
Q8 | In the long run, a monopolistically competitive firm earn
- Abnormal profit
- loss
- Normal profit
- Differentiated profit
Q9 | In the short run, a monopolistically competitive firm can have
- Abnormal profit
- loss
- Normal profit
- Any of the above are possible
Q10 | Selling cost is a feature of
- Monopolistic competition
- Perfect competition
- Monopoly
- Bilateral monopoly
Q11 | The concept of group equilibrium is related to
- Paul M sweezy
- Joan robinson
- E H Chamberline
- E L Edgeworth
Q12 | The concept of kinked demand curve is related to
- Paul M sweezy
- Joan robinson
- E H Chamberline
- E L Edgeworth
Q13 | Refrigerator company is an example of
- Oligopoly
- Perfect competition
- Monopoly
- Bilateral monopoly
Q14 | Cross elasticity of demand under monopolistic competition is?
- Zero
- Highly elastic
- Highly inelastic
- infinite
Q15 | The concept of group equilibrium is related to
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q16 | Excess capacity is a feature of equilibrium under
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q17 | Which of the following is an important form collusive oligopoly
- Bilateral monopoly
- Monopoly
- cartel
- Kinked Oligopoly
Q18 | OPEC is an example of
- Bilateral monopoly
- Monopoly
- cartel
- Kinked Oligopoly
Q19 | Comparing a monopoly and a competitive firm, the monopolist will
- produce less at a lower price
- produce more at a lower price
- produce less at a higher price
- produce less at a lower price
Q20 | A natural monopoly has a declining ________ over a large range of output
- long run marginal cost
- short run marginal cost
- long run average cost
- long run marginal cost
Q21 | Which form of monopoly control is most advantageous to consumer?
- price controls
- quantity controls
- lump sum tax
- all the above
Q22 | The market structure Perfect mobility of factors and products is called
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q23 | The market structure with Perfect knowledge is called
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Q24 | The condition of perfect competition is fulfilled when
- Sellers are large in number
- Buyers are large in number
- Commodity produced is homogenous
- All the above
Q25 | The following are conditions of perfect competition except
- Sellers are large in number
- Buyers are large in number
- Commodity produced is homogenous
- Commodity produced is differentiated