CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 1 - MCQExams.com

There is no difference between firm and industry in the case of _______.
  • pure monopoly
  • pure oligopoly
  • duopoly
  • perfect competition
Equilibrium of monopolist will never lie below the middle point of the average revenue curve because below the middle point _________.
  • elasticity of demand is less than one
  • MR is negative
  • both (a) and (b)
  • market laws cease to operate
A perfectly competitive industry becomes a monopoly with same cost conditions, it will now sell _________.
  • an unchanged output at a higher price
  • a larger output at the old price
  • a larger output at a higher price
  • a reduced output at a higher price
Under perfect market and in case of decreasing marginal cost the firm's equilibrium with respect to level of production _________.
  • cannot be achieved
  • can be achieved after a small level of output
  • can be achieved after a high level of output
  • will result in run-away inflation
In figure, the firm's most efficient output is _______.
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  • OK
  • OL
  • OM
  • ON
Which is the best definition of the marginal firm?
  • The firm with the largest profit.
  • The firm with the lowest costs.
  • The firm which makes only normal profit.
  • The firm which equates its marginal cost with marginal revenue.
Examples of monopolistic competition
I. grocery stores
II. petrol stations
III. shoe-repairing shops
IV. dry-cleaning establishment 
  • I and II are correct
  • III and IV are correct
  • I, II and III are correct
  • All are correct
Monopoly power indicates the __________.
  • extent of the departure from the competitive behaviour
  • evils of monopoly
  • effects of monopoly
  • all the above
The quantity purchased by the consumers is  _______ function of the price.
  • increasing
  • decreasing
  • not a 
  • none of these
Monopoly is not considered desirable from the point of view of the society mainly because the monopolist endeavours to________.
  • Earn net revenue on sale of all goods including those involving no cost of production
  • Earn net revenue on sale of goods in short run as well as long run
  • Charge different prices for the same product from the different categories of buyers
  • Produce below economic capacity level when he exhibits satisfaction with normal profit only
In the short term, monopolist firm's equilibrium is at _________.
  • Break even point
  • AR<AC
  • MR<MC
  • All of these
Present day, business is mostly _______ in nature.
  • Oligopolistic
  • Duopolistic
  • Monopolistic
  • Bilateral
In monopoly market structure, the industry demand curve is the ____________.
  • average revenue curve of a firm
  • marginal revenue curve of a firm
  • marginal cost curve of a firm
  • none of the above
In modern oligopolistic business, ________ is very common.
  • Cartel
  • Collusion
  • Price rigidity
  • Non-collusion
In short run, a competitive firm can earn only _____________.
  • Normal profit
  • Supernormal profit
  • Losses
  • Any one of the above
A firm in the short period (perfect competition) may earn ______________.
  • Normal profit
  • Abnormal profit
  • Loss
  • Any one of the above
The industrys' short - period supply curve under Perfect Competition will slope ________________.
  • downwards to the right
  • upwards to the right
  • horizontal to y axis
  • parallel to x axis
In which of the following market structure is the degree of control over the price of its product by a very large firm?
  • imperfect competition
  • perfect competition
  • monopoly
  • in A and B both
In imperfect competition, the MR curve will lie ______________.
  • Below the AR curve
  • Above the MR curve
  • Below the AC curve
  • Above the AC curve
The supply curve of the industry (perfect competition) is a _________________.
  • Lateral summation of the supply or cost curves of the individual firms
  • Lateral summation of the average revenue curve of the firm
  • Lateral summation of the demand curves of the firm
  • U shaped curve
The average revenue curve of a firm under pure monopoly will be a _______________.
  • Straight line
  • Vertical line
  • Downwards slope
  • Rectangular hyperbola
Under monopoly ________________.
  • The AR being steeper than the MR curve
  • The MR being steeper than the AR curve
  • MR = AR
  • AC = AR
Which of the following is true?
  • AR= Price
  • MR can be negative
  • AR can be negative
  • TR can be negative
Perfect monopoly as a single - firm industry where __________________.
  • The cross-elasticity of demand between the product of the firm and that of other commodities in the market is zero
  • The cross-elasticity of demand between the product of the firm and that of other commodities in the market is small, though it is above zero
  • The income elasticity bf demand between the product of the firm and that of other commodities in the market is zero
  • The price elasticity of demand between the product of the firm and that of other- commodities in the market is zero
The monopoly firm can achieve equilibrium ___________________.
  • Only when the MC curve is rising at and near the equilibrium output
  • Not only with a rising MC curve, but also with constant and falling MC curves
  • Only when AC curve is rising at and near the equilibrium output
  • Only when the MC curve is falling at and near the equilibrium output
In a monopoly market structure ________________.
  • there is a single buyer of the product for which there are no close substitutes
  • there is a single seller of the product for which there are close substitutes
  • there is a single seller of the product for which there are no close substitutes
  • there are single buyer and seller of the product for homogeneous product
In the short period, the monopoly price may be _____________.
  • Greater than the average costs
  • Equal to the average costs
  • Less than the average costs
  • Any one of the above
The demand curve of the monopoly firm is also its ____________.
  • average revenue curve
  • marginal revenue curve
  • total revenue curve
  • average cost curve
The monopoly firm can achieve equilibrium when ______________.
  • It earns maximum output
  • It earns maximum profits
  • It minimises its cost
  • All the above
If the monopoly price is less than the average costs, the firm ______.
  • earns monopoly profits
  • earns normal profits
  • suffers losses
  • earns no profit or loss
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