Price Determination in Different Markets 0 Price Determination in Different Markets 1 / 28 Q.30 Demand curve is equal to M. R. curve in which market? Oligopoly Monopoly Monopolistic Competition Perfect Competition 2 / 28 Q.29 _______ is the price at which demand for a commodity is equal to its supply : Normal Price Equilibrium Price Short run Price Secular Price 3 / 28 Q.28 In the long run : Only demand can change Only supply can change Both demand and supply can change None of these 4 / 28 Q.27 An increase in supply with unchanged demand leads to : Rise in price and fall in quantity Fall in both price and quantity Rise in both price and quantity Fall in price and rise in quantity 5 / 28 Q.25 Given the relation MR=P,(1-1e)">MR=P,1−1e��=�,(1-1�) if e<1">e<1�<1 , then MR < 0 MR > 0 MR = 0 None of these. 6 / 28 Q.24 The market structure in which the number of sellers is small and there is inter dependence in decision making by the firms is known as: Perfect Competition Oligopoly Monopoly Monopolistic competition 7 / 28 Q.23 Kii. If one firm decreases price other firms also decreases the price nked demand curve of the Oligopoly indicatesii. If one firm increases price other firms also increases the priceiii. If one firm decreases the price other firms does not decrease the price.iv. If one firm increases the price other firms does not increase the price. Only I II and IV II and IV II and III 8 / 28 Q.22 In Oligopoly, why it difficult to determine the equilibrium price and output? All the Firms take their independent decisions Firms are interdependent making it difficult to specify the particular reaction of the rivals Very few Firms exist in the market A large number of Firms exist in the market 9 / 28 Q.21 A Firm having a Kinked Demand Curve indicates that If the Firm increases the price, competitive Firms reduce the price If the Firm increases the price, competitive Firms also increase the price If the Firm reduces the price, competitive Firms do not reduce the price If the Firm increases the price, competitive Firm do not increase the price 10 / 28 Q.20 The price discrimination under monopoly will be possible under which of the following conditions? The seller has no control over the supply of his product The market has the same conditions all over The price elasticity of demand is different in different markets The price elasticity of demand is uniform 11 / 28 Q.19 Under Monopoly, the Firm can earn _____ in the short-run. Normal Profits only Super Normal Profits Losses All of the above. 12 / 28 Q.18 A Monopolist who faces a negatively sloped demand curve operates in the region where the elasticity of demand is Less than one Equal to one Equal to one Between zero and one 13 / 28 Q.17 The Demand Curve facing an industrial Firm under Monopoly is a/an Horizontal Straight Line Indeterminate Downward Sloping Upward Sloping 14 / 28 Q.16 Which of the following is false regarding Monopoly? Firm is a price taker Unique product Single Seller None of the above 15 / 28 Q.15 Under Perfect Competition, In the long-run, the _____ will be tangent to the AR Curve, LAC Curve LMC Curve Demand Supply 16 / 28 Q.14 Which of the following curves resembles the Demand Curve in a Perfect Competition? Average Cost Curve Marginal Utility Curve Average Utility Curve Average Variable Cost Curve 17 / 28 Q.13 One of the essential conditions of .Perfect Competition is Product Differentiation Multiplicity of prices for identical product at any one time. Many Sellers and few Buyers Only one price for identical goods at any one time 18 / 28 Q.12 What is the other name given for Average Revenue Curve? Profit Curve Demand Curve Average Cost Curve Indifference Curve 19 / 28 Q.11 In which type of economy do consumers and producers make their choices based on the market forces of demand and supply? Economy Controlled Economy Command Economy Market Economy 20 / 28 Q.10 Excess capacity is not found under _____ Monopoly Monopolistic Competition Oligopoly Perfect Competition 21 / 28 Q.9 ._____is the market structure where there is a single buyer Monopsony Monopoly Oligopsony Duopoly 22 / 28 Q.8 If average variable cost exceeds the market price, the firm should produce - zero output with fixed costs zero output without fixed cost less output without fixed costs zero output with or without fixed cost 23 / 28 Q.7 The AR curve is tangent to the minimum point of AC curve in the long run, if there is - perfect competition oligopoly monopoly monopolistic competition 24 / 28 Q.5 Equilibrium price is also called balanced price market price stable price All the above 25 / 28 Q.4 When demand is inelastic MR is negative Positive zero one 26 / 28 Q.3 Entry-exit is free under which market structure ? perfect competition & monopoly perfect competition & monopolistic competition perfect competition & monopolistic competition perfect competition & oligopoly 27 / 28 Q.2 Few sellers is a feature monopoly perfect competition monopolistic competition oligopoly 28 / 28 Q.1 The demand curve is undefined under which market structure ? monopoly perfect competition discriminating monopoly oligopoly Your score is LinkedIn Facebook Twitter VKontakte
