Micro Economics Analysis Set 4
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This set of Micro Economics analysis Multiple Choice Questions & Answers (MCQs) focuses on Micro Economics Analysis Set 4
Q1 | Monopsony refers to
- single seller
- a few sellers
- single buyer
- a few buyers
Q2 | Discriminating monopoly is possible if two markets have
- differing elasticity of demand
- differing average cost
- same elasticity
- different average cost
Q3 | Monopolist can fix
- both price and output
- neither price and output
- either price and output
- none of the above
Q4 | 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
Q5 | 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
Q6 | The best level of output for the monopolist is
- ac is minimum
- tc=tr
- tr and tc are parallel
- tr is maximum
Q7 | If the monopolist faces identical demand for his commodity in thetwo separate markets, by practicing third degree price discrimination
- 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
Q8 | Under pure monopoly, there will be
- no distinction between firm and industry
- one firm no industry
- no firm one industry
- very few firms
Q9 | 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
Q10 | Under monopoly, the equilibrium price is
- equal to mc
- less than mc
- more than mc
- equal to ac
Q11 | The cross elasticity of demand for the monopolist product is
- very low
- moderate
- high
- very high
Q12 | 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
Q13 | A monopolist usually earns
- economic profit
- only normal profit
- losses
- profit and losses, which are uncertain
Q14 | Price discrimination is possible
- under any market form
- only under monopoly
- only under monopolistic competition
- only in perfect competition
Q15 | Who introduced various types of price discrimination
- alfred marshall
- adam smith
- a c pigou
- j b say
Q16 | 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
Q17 | ‘Indeterminateness of demand curve’ is a feature of
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q18 | Selling cost is maximum in the case of
- monopoly
- oligopoly
- perfect competition
- monopolistic competition
Q19 | The concept of ‘Kinked demand curve’ is related to
- monopoly
- monopolistic competition
- perfect competition
- oligopoly
Q20 | The concept of ‘Kinked demand curve’ was developed by
- alfred marshal
- j r hicks
- p m sweezy
- a.k sen
Q21 | ‘Group behavior’ is a feature of
- monopoly
- oligopoly
- perfect competition
- monopolistic competition
Q22 | Advertising can become ‘a life and death matter’ in
- perfect competition
- monopoly
- monopolistic competition
- oligopoly
Q23 | Classical oligopoly models are related to
- collusive oligopoly
- non-collusive oligopoly
- price leadership model
- none of the above
Q24 | 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
Q25 | ‘Cartels’ are example for
- collusive oligopoly
- non-collusive oligopoly
- monopsony
- none of the above