CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 5 - MCQExams.com

The term short run equilibrium refers to_____.
  • aggregate demand is equal to aggregate production
  • aggregate demand aggregate supply
  • aggregate demand is more than aggregate supply
  • aggregate demand is less than aggregate supply
The marginal revenue curve of first degree price discriminating monopoly is __________.
  • U shaped
  • straight line
  • same as its supply curve
  • equal to its demand curve
Marginal revenue of a pure monopoly is less than its price because _________.
  • to sell more it reduces prices
  • fear of government intervention
  • fear of losing customer base
  • its commitment toward social justice
Which of the following is not an essential condition for price discrimination?
  • Perfect communication between buyers and sellers
  • Different price elasticity
  • Different market
  • Existence of two markets.
In the short run, a monopolist's profits __________.
  • may be positive, negative, or zero.
  • are positive because of the monopolist's market power.
  • are positive if the monopolist's elasticity of demand is less than 1.
  • are positive if the monopolist's selling price is above average variable cost.
A monopoly based on size and market strength is known as __________.
  • technological monopoly
  • natural monopoly
  • geographical monopoly
  • government monopoly
Average revenue of a monopolist firm is __________.
  • always more than the marginal revenue
  • always less than the marginal revenue
  • equal to marginal revenue
  • any of the above is possible
When the demand of a pure monopoly firm is elastic, MR will be _______.
  • negative
  • positive
  • zero
  • none
If the demand elasticity for the monopolistic product is $$1.25$$ and the marginal revenue is $$20$$, what is the price of the product?
  • $$44.44$$
  • $$20$$
  • $$22$$
  • $$18$$
Duopoly is characterized by ___________ sellers.
  • more than $$2$$
  • $$2$$
  • $$3$$
  • more than $$3$$
A natural monopoly has declining _________ over large range of output.
  • long run average cost
  • short run average cost
  • long run total cost
  • short run total cost
For a monopoly firm the MR curve ___________.
  • overlaps AR curve
  • is above the AR curve
  • lies half way between AR Curve and the Y-axis
  • is parallel to X-axis
Average revenue of a monopolist firm is _________.
  • always more than the marginal revenue
  • always less than the marginal revenue
  • equal to marginal revenue
  • any of the above three possible
The market structure where there are many firms selling differentiated product is known as____.
  • oligopoly
  • perfect monopoly
  • monopolistic competition
  • duopoly
Which of the following statement is correct.
  • in case of a Monopolistic firm there is no supply curve
  • supply curve of a Monopolistic firm is downward sloping
  • supply curve of a monopolistic firm is upward sloping
  • supply curve of a monopolistic firm is a straight line
The firm in a perfectly competitive, market is a price taker. This designation as a price taker is based on the assumption that:
  • The firm has some, but not complete, control over its product price.
  • There are so many buyers and sellers in the market that any individual firm cannot affect the market.
  • Each firm produces a homogeneous product.
  • There is easy entry into or exit from the market place.
Product differentiation by a firm is generally noticed in __________.
  • Perfect competition
  • Monopolistic competition
  • Oligopoly
  • Pure competition
Which of the following is not feature of Perfect Competition?
  • Perfect knowledge of the market conditions to buyers and sellers
  • Firm is a price maker
  • Large number of buyers and sellers
  • Free entry and exit
Price-taking firms, i.e., firms that operate in a perfectly competitive market, are said to be small relative to the market. Which of the following best describes this smallness?
  • The individual firm must have fewer than 10 employees.
  • The individual firm faces a downward-slopping demand curve.
  • The individual firm has assets of less than 20 lakh.
  • The individual firm is unable to affect market price through its output decisions.
When Marginal revenue is zero?
  • Total revenue is also zero
  • Total revenue is the maximum
  • Total revenue is the minimum
  • Total revenue starts increasing sharply
The average revenue curve of a monopolist firm is ____________.
  • upward sloping
  • downward sloping
  • parallel to X axis
  • u shaped
Which of these can be treated as drawback of public ownership of a natural monopoly __________________.
  • it is beset with inefficiencies
  • political interferences
  • lack of professional approach
  • breads corruption
Which of these is a correct statement.
  • In the long run a firm in perfect competition earns only normal profit
  • A firm in perfect competitive market can raise its revenue by reducing price
  • In a perfect competitive market firm is the price maker
  • Firms in perfect competitive market sells non-homogenous products
The concept of marginal cost is closely related with which of the following?
  • Variable cost
  • Fixed cost
  • Opportunity cost
  • Economic cost
A monopoly firms demand curve is __________.
  • same as its supply curve
  • same as its average revenue curve
  • same as its marginal revenue curve
  • a straight line
Price discrimination will be profitable only if the elasticity of demand in different markets in which the total market has been divided is ____________.
  • uniform
  • different
  • less
  • zero
Discrimination monopoly implies that the monopolist charges different prices for his commodity:
  • From different groups of consumers
  • For different uses
  • At different places
  • Any of the above
In short run a firm operating under monopolistic competition may ___________.
  • incur loss
  • earn just normal profit
  • earn abnormal profit
  • any of above
Figure (A) shows the equilibrium position of ______________.
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  • an industry
  • a firm
  • a perfectly competitive industry
  • a perfectly competitive firm
The kinked demand curve model of oligopoly assumes that:
  • Response to a price increase is less than the response to a price decrease.
  • Response to a price increase is more than the response to a price decrease.
  • Elasticity of demand is constant regardless of whether price increases or decreases.
  • Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases.
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