CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 2 - MCQExams.com

The firm under pure monopoly ______________.
  • can fix the price of the commodity
  • can fix the quantity to be sold
  • can fix both the price and output
  • can fix either the price or the quantity to be sold
If the monopoly price is equal to average cost, the firm ___________.
  • earns monopoly profits
  • suffers losses
  • earns normal profits
  • earns either profit or loss
In the long period, the monopoly firm achieves equilibrium at that level of output where the _______________.
  • SRMC = SRMR
  • LRMC = LRMR
  • LRAR=LRAC=SRMR
  • AR=MR=P
The discriminating monopolist will be in equilibrium when __________________.
  • Marginal cost=Combined Marginal Revenue
  • Marginal Revenue in market A=Marginal Revenue in market B=Marginal cost
  • MC=MR=AC=AR
  • Both (A) and (B)
A monopoly firm can earn supernormal profit both in the short-run and long-run, because __________.
  • New firms are entered into the industry
  • The entry of new firms is restricted
  • Of the concept of selling cost
  • Of the use of economies of scale in production
Price discrimination may:
  • Increase the monopoly power of the producer.
  • Give the monopolist higher profits.
  • Both (a) and (b)
  • Develop new traders.
The monopoly firm may charge from the customers ___________.
  • A single uniform price
  • Different prices
  • Discriminating prices
  • all of the above
The monopolist price depends upon:
  • Elasticity of the demand.
  • Behaviour of the average cost.
  • Demand and supply.
  • Both (A) and (B)
Government can eliminate all monopoly profits by setting a price equal to ______________.
  • Average variable cost
  • Average cost
  • Average fixed cost
  • Marginal cost
The monopoly firm stops its output at that point where ____________.
  • MR>MC
  • MR
  • MR = MC
  • AR=AC
A monopoly firm can earn super normal profit in the __________.
  • long-run
  • short-run
  • both (a) and (b)
  • none of the above
In a simple monopoly market situation, the cross elasticity of the product is ______________.
  • Very low
  • Very high
  • Equal to zero
  • Equal to one
Bilateral - monopoly is also known as ______________.
  • buyers monopoly
  • buyers surplus
  • monopoly - monopsony situation
  • oligopoly - monopoly situation
Monopsony is also known as ____________.
  • Buyers surplus
  • Buyers monopoly
  • Producers monopoly
  • Bilateral monopoly
A pure monopoly firm exists when there is _________.
  • just one seller and the product has no substitute
  • just one seller
  • no close substitutes
  • remote substitutes
The term bilateral monopoly refers to that market situation in which _______.
  • a single seller confronts a single buyer
  • there are large number of buyers and sellers
  • few sellers and large number of buyers are available
  • only one producer of a commodity is available
Formula for the measurement of monopoly power has been given by _______________.
  • Mrs. Joan Robinson
  • Lionel Robins
  • A.P Lerner
  • Benhem
Monopsony refers to the market structure in which:
  • There is only one seller of a commodity.
  • There is only one buyer of a commodity.
  • There is large number of buyers.
  • There are few sellers and larger number of buyers.
Main varieties of imperfect competition _________________.
  • Monopolistic competition
  • Oligopoly
  • Duopoly
  • All the above
The formula for measurement of monopoly power has been given by ____________.
  • $$\frac{P-AC}{P}$$
  • $$\frac{P-MC}{P}$$
  • $$\frac{P-AR}{P}$$
  • $$\frac{P-TC}{P}$$
The term monopsony was coined by ____________.
  • A.P Lerner
  • Joan Robinson
  • Marshall
  • Pigou
The firms, under monopolistic competitions, compete through __________.
  • price variation
  • product variation
  • advertisements
  • both (B) and (C)
The architect of the theory of monopolistic competition is ________.
  • E.H. Chamberlin
  • Mrs. Joan Robinson
  • Robertson
  • Sweezy
Monopolistic competition is also referred to as _________.
  • group equilibrium
  • general equilibrium
  • partial equilibrium
  • stable equilibrium
In the short run, a firm under monopolistic competition earns ______________.
  • Normal profit
  • Abnormal profit
  • Ordinary profit
  • None of the above
Monopolistic competition refers to the market structure in which there:
  • Are many buyers in the market
  • Are many sellers in the market
  • Are many producers producing goods which are close substitutes of one another
  • Is single seller in the market
Choose the correct answer ____________.
  • Partial equilibrium- Keynes
  • General equilibrium - Marshall
  • Group equilibrium - Chamberlin
  • Stable equilibrium- Mrs. Joan Robinson
In the long period, a firm under monopolistic competition earns only ______________.
  • normal profit
  • abnormal profit
  • supernormal profit
  • none of the above
In the short-run, a firm under monopolistic competition earns abnormal profit because _________________.
  • other firms are not in a position to bring out closely similar product in that period
  • it charges a lower price
  • it charges a higher price
  • the demand curves are elastic
The average revenue curve of a firm under monopolistic competition is __________________.
  • Perfectly elastic
  • Rigidly elastic
  • Lesser steepness than
  • None of the above of a monopoly firm
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