CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 10 - MCQExams.com

The theory of oligopoly is the theory of _________.
  • Mass behaviour
  • Individual behaviour
  • Group behaviour
  • All the above
Price discrimination is not profitable when _________________.
  • The demand curves are iso-elastic
  • The demand curves are elastic
  • The supply curves are iso-elastic
  • The supply curves are elastic
In the figure, the firm is earning only normal profit because ____________.

744766_31494309765142e8b1a80a05a06cb639.png
  • QM is not only the average revenue, it is also the average cost
  • QM is not only the marginal cost, it is also the marginal revenue
  • Marginal revenue is equal to marginal cost
  • None of the above
In the figure, the shaded area NSRQ represents

744767_d32c984f7d7e4242aa6deaa44c2c4460.png
  • Abnormal profit
  • Normal profit
  • Loss
  • Abnormal loss
Imperfect competition is a market situation as one which lies between the two extremes of ________.
  • perfect competition and pure competition
  • pure competition and pure monopoly
  • perfect competition and pure monopoly
  • monopoly and monopolistic competition
In the above diagram, the shaded area NSRQ represents _____________.

744764_d422097d2f0640d59f88ec5ca3a14685.png
  • Normal profit
  • Abnormal profit
  • Loss
  • Any one of the above
Imperfect monopoly is a single firm industry where ___________________.
  • The cross elasticity 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 price elasticity to the market is zero
  • The income elasticity to the market is zero
In the figure, the firm is incurring a loss because 

744768_cd26e9a87543424a91c95be5b52afb61.png
  • AR<AC
  • AR>AC
  • MC = MR
  • MR>MC
In the long run, the monopolist ___________.
  • always produces at the lowest point on the LAC curve
  • can incur losses
  • can continue to make profits because, entry into the industry is restricted
  • has break-even because other firms enter into the industry
The marginal revenue of the monopolist is ____________.
  • Larger than price
  • Equal to price
  • Smaller than price
  • Any of the above is possible
Relationship between revenue and elasticity of demand can be given by __________.
  • $$ MR = AR \left ( 1-\frac{e}{p} \right )$$
  • $$ MR = AR \left ( 1-\frac{1}{e} \right )$$
  • $$ AR = MR \left ( 1-\frac{1}{e} \right )$$
  • $$ AR > MR \left ( 1-\frac{1}{e} \right )$$
Which of the following is/are correct regarding the shape of total revenue under perfect competition?
(i) TR curve is the straight line from the origin.
(ii) Its slopes is constant
(iii) TR curve is S-shaped
(iv) Its slopes change with the change in output
  • (i) and (ii) only
  • (iii) and (iv) only
  • (i) and (iii) only
  • (ii) and (iv) only
In perfect competition, since the firm is a price taker; the ________ curve is straight line.
  • marginal cost
  • total cost
  • total revenue
  • marginal revenue
Marginal revenue will be positive if elasticity of demand is _________.
  • less than one
  • more than one
  • equal to one
  • equal to zero
The distinction between a single firm & an Industry vanishes in which of the following market condition.
  • Monopoly.
  • Perfect competition.
  • Monopolistic competition.
  • Imperfect competition.
In perfect competition, when price is less than minimum AVC in the short run, the firm produces __________.
  • output level where AVC intersects SMC
  • zero output
  • both A and B
  • none of the above
Marginal revenue will be zero if the elasticity of demand is _________.
  • less than one
  • greater than one
  • equal to one
  • equal to zero
As in perfect Competition, the Firms operating in a monopolistically competitive industry can realize only Normal Profits in the long run because.
  • The Firms tend to have diseconomies of scale in the long run.
  • There are virtually no entry or exit barriers.
  • Consumers are more price sensitive in the long ruin thar in the short run.
  • Cartels agreements tend to be more unstable with the increase of time as member Firms try to increase their profits by cheating on the agreement.
In India, the Milk Market resembles a perfectly competitive industry. If the industry is an increasing cost industry, the long run supply curve of the industry _________.
  • Slopes upward to the right.
  • Slopes downward to the right.
  • Would be a vertical straight line.
  • Would be horizontal straight line.
In figure, the firm's most profitable output is ___________.
958148_0dda08aa8fbb49c19feca6d0d089d408.jpg
  • OK
  • OL
  • OM
  • ON
In Figure, curve E is the firm's __________.
958146_3f520fa06bcf4ade85f314ca8e57190d.jpg
  • marginal cost curve
  • average cost curve
  • demand curve
  • marginal revenue curve
Figure represents equilibrium of a __________.
958144_0b8a70036713465183fa58542e07b4ec.jpg
  • perfectly competitive firm
  • perfectly competitive industry
  • monopolist
  • none of the above
When production equals 7 units,the firm's profit is :
  • Rs. 0
  • Rs. 41.57
  • Rs. 291
  • Rs. 336
In figure, the firm's marginal revenue curve is curve _______.
958145_43c8b0f2e40441b6bf6169ba0c740448.jpg
  • E
  • A
  • F
  • B
In the table marginal cost per unit that corresponds to 40 units of production is _________.
  • Rs. 22
  • Rs. 85
  • Rs. 176
  • Rs. 880
Marginal Revenue will be negative if the demand is _________.
  • relatively elastic
  • unitary elastic
  • relatively inelastic
  • perfectly elastic
When production is 40 units, the average total cost is ________.
  • Rs. 48.40
  • Rs. 75.50
  • Rs. 85
  • Rs. 92.50
Under perfect competition a firm will be in equilibrium if __________.
  • MC=MR
  • MC cuts the MR from below
  • MC rises when it cuts the MR
  • all the conditions stated above are fulfilled
If a demand curve exhibits unit elasticity for all prices the MR curve ___________.
  • is identical with it
  • lies below the demand curve
  • is parallel to the x-axis
  • is identical with the y-axis
ABC Ltd. realizes total revenue of $$Rs. 6,000$$ by the sale of $$120$$ units and $$Rs. 6050$$ by the sale of $$121$$ units
What is the average revenue when ABC Ltd. Sells $$121$$ units
  • $$6,000$$
  • $$6,050$$
  • $$50$$
  • $$100$$
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