Micro Economics Analysis Set 2
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This set of Micro Economics analysis Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics Analysis Set 2
Q1 | The importance of time element in price determination was firstlyanalyzed by
- adam smith
- alfred marshall
- david ricardo
- j m keynes
Q2 | In the market period, price determination in the case of aperishable commodity is influenced by its
- demand
- supply
- demand as well as the supply
- none of the above
Q3 | In the short-period,
- all factors are fixed
- some factors are fixed and others are variable
- all factors are variable
- none of the above
Q4 | In the long-period,
- all factors are fixed
- some factors are fixed and others are variable
- all factors are variable
- none of the above
Q5 | Zero economic profit arises in the long run in the case of
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q6 | Zero economic profit includes
- zero normal profit
- normal profit
- super normal profit
- average profit
Q7 | Economic efficiency is achieved in the long run in the case of
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q8 | Consumer surplus will be maximum in the case of
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q9 | At the optimum short-run level of output, the firm will be
- maximizing total profit
- minimizing total losses
- either maximizing total profit or minimizing total losses
- maximizing profit per unit
Q10 | The short-run supply curve of a perfectly competitive firm is given by
- rising portion of the mc curve over and above the shut-down point
- rising portion of the mc curve over and above the break-even point
- rising portion of the mc curve over and above the ac curve
- rising portion of the mc curve
Q11 | When the perfectly competitive firm and industry are both in longrun equilibrium
- p = mr = smc = lmc
- p = mr = sac = lac
- p = mr =lowest point on the lac curve
- all of the above
Q12 | Monopolistic competition is characterized by
- few firms’ selling differentiated products
- many firms selling homogeneous product
- few firms selling homogeneous product
- many firms selling differentiated products
Q13 | The theory of monopolistic competition was popularized by
- marshall
- keynes
- chamberlin
- pigou
Q14 | A monopolistically competitive market is distinguished from perfectcompetition by the fact that
- few sellers
- it has few buyers
- it deals with differentiated products
- none of the above
Q15 | Excess capacity is a hallmark of
- perfect competition
- monopoly
- oligopoly
- monopolistic competition
Q16 | Monopolistically competitive firms
- are small in size
- have small share in the market
- are large in the size
- both a and b
Q17 | Selling cost assumes paramount importance in
- perfect competition
- monopoly
- monopolistic competition
- none of the above
Q18 | Under monopolistic competition, there can be freedom of entry inthe sense that there is freedom to produce
- close substitutes
- perfect substitutes
- complements
- none of the above
Q19 | A firm under monopolistic competition advertise because
- to compete successfully with rival
- to lower cost of production
- to increase revenue and sales
- since it cannot raise price
Q20 | In the case of monopolistic competition,
- short run supply curve cannot be defined
- mr curve cannot be defined
- ar curve cannot be defined
- none of the above
Q21 | Under monopolistic competition, super normal profit arise when
- ar=ac
- mr=mc
- ar>ac
- ar
Q22 | Which of the following condition are met in the long run equilibriumof the monopolistic competitor earning only normal profit
- mc=ac
- p=ac
- p=mr
- p=mc
Q23 | The term group equilibrium is referred to
- duopoly
- monopolistic competition
- perfect competition
- oligopoly
Q24 | Increase or decrease in the level of production by a monopolistically competitive firm have ------- impact on price and output decisionsof other firms
- very significant
- significant
- small
- negligible
Q25 | Monopolistic competitive firm fixes the price of its product
- independent of the price of close substitutes
- close to the prices of close substitutes
- at a very high level
- none of the above