CBSE Questions for Class 11 Commerce Economics Non-Competitive Markets Quiz 8 - MCQExams.com

When elasticity of demand is equal to one, MR will be equal to _______.
  • one
  • zero
  • infinity
  • negative
When AR=AC under monopoly, then what will happen to MR and MC?
  • MR will be equal to MC
  • MR will be more than MC
  • MR will be less than MC
  • Can't be determined
Total revenue is a straight positively sloping line, having a constant slope, from origin under:
  • perfect competition
  • monopoly
  • monopolistic competition
  • oligopoly
Which of the following is not correct for the equilibrium condition of a monopolist firm?
  • $$MC=MR$$
  • $$AR > AC$$
  • $$P>MC$$
  • $$MC=AR$$
At every level of production AR is equal to MR in case of ________.
  • perfect competition
  • monopoly
  • oligopoly
  • all of the above
One producer equates price and MC to maximize profit, while the other equates MC and MR for the same purpose they are __________.
  • monopolist and perfect competitor
  • monopolist and imperfect competitor
  • oligopolist and monopolist
  • perfect competitor and monopolist
Monopoly price is the function of ____________.
  • marginal cost of production
  • price elasticity of demand
  • either (a) or (b)
  • both (a) and (b)
Which of the following is true regarding monopolistic competition?
  • $$AR=MR$$
  • $$MR=0$$
  • $$AR< MR$$
  • $$AR>MR$$
The concept of supply curve is relevant only for __________.
  • perfect competition
  • monopoly
  • monopolistic competition
  • oligopoly
A profit maximizing firm will stop production in the short run if price is __________.
  • less than average cost
  • below the marginal cost
  • less than average variable cost
  • equal to average cost
If an individual seller, in a perfectly competitive market, wishes to double his sales, he would __________.
  • improve the quality of his product
  • lower his price to half
  • simply supply double the quantity of his product
  • advertise the superiority of his product.
The short-run supply curve of a firm under perfect competition is the same as _________.
  • average variable cost curve
  • marginal cost curve
  • marginal cost curve above average variable cost curve
  • average total cost curve.
Short-run supply curve of the perfectly competitive firm is represented by ___________.
  • short-run marginal cost curve
  • short-run average cost curve
  • long-run average cost curve
  • only that part of marginal cost curve which lies above the average variable cost.
When AR is falling, MR will be ___________.
  • equal to AR
  • less than AR
  • more than AR
  • either more or equal to AR
Under which market structure, average revenue of firm is equal to its marginal revenue?
  • Oligopoly
  • Monopoly
  • Perfect competition
  • Monopolistic competition
Assume that a firm's total revenue curve takes the form of a straight line, which passes through the origin. We may deduce that __________.
  • prices exceeds marginal revenue
  • price and marginal revenue are equal
  • total costs and total revenue are equal
  • elasticity of demand for the product is unity
The strength of a monopolist may be assessed by ____________.
  • the size of his total revenue
  • the gap between AR and MR
  • the size of consumer's surplus accruing to him
  • the long-term price of his product
Under monopoly, MR can be negative only when:
  • AR is increasing
  • AR is decreasing
  • AR is constant
  • AR is zero
The average revenue curve of a firm in perfect competition is __________.
  • U-shaped
  • l-shaped
  • Veritcal
  • Horizontal
When AR is constant, MR is __________.
  • equal to AR
  • more than AR
  • less than AR
  • equal to zero
Monopoly power refers to the firm's ability to ___________.
  • earn economic profit
  • restrict entry into the industry
  • set prices above marginal cost.
  • possess economies of scale.
Even in the long run equilibrium, the pure monopolist can make abnormal profits because of _________.
  • entry for new firms is blocked
  • high price he charges
  • his low LAC
  • advertising
In general, if the average revenue curve is a straight line, the marginal revenue curve will be _________.
  • U-shaped
  • a straight line
  • C-shaped
  • bell-shaped
When price reduces as output increases, $$AR = MR$$.
  • True
  • False
Under perfect competition:
  • MR curve is below AR curve
  • Price $$=$$ AR $$=$$ MR
  • AR remains constant
  • Both (b) and (c)
MR is different from AR under:
  • Perfect competition
  • Monopoly
  • Monopolistic competition
  • Both (b) and (c)
Which market induces cartels?
  • Perfect competition
  • Monopoly
  • Oligopoly
  • None of the above
Under collusive oligopoly, price is often decided by _________.
  • the industry
  • the firm
  • price leader
  • none of the above
If AR curve is falling straight line, MR curve will lie below it in such a way that any line drawn from a point from y-axis parallel to x-axis to meet the AR curve is intersected by the MR curve _________.
  • mid-way
  • more than half-way
  • less than half-way
  • any where
The slope of a tangent to any point on the total revenue curve shows ________.
  • marginal revenue
  • average revenue
  • price per unit
  • none of the above
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