Quiz on Price determination in different markets

#1. Which of the following is not a characteristic of a “price-taker”?

#2. Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilisation of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?

#3. When e < 1 then MR is

#4. Which of the following is not a characteristic of a competitive market?

#5. The demand curve of a monopoly firm will be __________________

#6. Marginal revenue can be defined as the change in total revenue resulting from the:

#7. Which of the following statements is incorrect?

#8. The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar, because in both market structures

#9. Time element was conceived by

#10. Which of the following is not a characteristic of monopolistic competition?

#11. In oligopoly, when the industry is dominated by one large firm which is considered as leader of the group, Then it is called:

#12. Agricultural goods markets depict characteristics close to

#13. When price is less than average variable cost at the profit-maximising level of output, a firm should:

#14. Stock exchange market is an example of

#15. Combination of Monopoly Market and Monopsony Market is called as:

#16. Which of the following statements is accurate regarding a perfectly competitive firm?

#17. Marginal Revenue is equal to:

#18. Which of the following is not a characteristic of a monopolistically competitive market?

#19. Price discrimination is related to

#20. When ______________________________, there will be allocative efficiency meaning thereby that the cost of the last unit is exactly equal to the price consumers are willing to pay for it and so that the right goods are being sold to the right people at the right price

#21. For market the essential condition is –

#22. The market for hand tools (such as hammers and screwdrivers) is dominated by Draper, Stanley, and Craftsman. This market is best described as

#23. When the products are sold through a centralized body, oligopoly is known as

#24. Which of the following is the distinguishing characteristic of oligopolies?

#25. Price Discrimination cannot persist under the following market form:

#26. AR can be symbolically written as:

#27. At price P1, the firm in the figure would produce QNO 75 PGNO 4.64

#28. The structure of the cold drink industry in India is best described as

#29. Under _________________ the monopolist will fix a price which will take away the entire consumers’ surplus.

#30. With a given supply curve, a decrease in demand causes

#31. Under monopoly, the degree of control over price is:

#32. Discriminating monopoly implies that the monopolist charges different prices for his commodity:

#33. One characteristic not typical of oligopolistic industry is

#34. The firm in a perfectly competitive market is a price-taker. This designation as a price-taker is based on the assumption that

#35. Monopolistic competition differs from perfect competition primarily because

#36. Secular period is also known as

#37. Monopoly may arise in a product market because

#38. Pure oligopoly is based on the ________________ products

#39. In the context of oligopoly, the kinked demand hypothesis is designed to explain

#40. Under perfect competition, in the long run, there will be no ________________ .

#41. Average revenue is equal to

#42. If supply increases in a greater proportion than demand

#43. Under perfect competition a firm is the ___________

#44. 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?

#45. Assume that in the market for good Z there is a simultaneous increase in demand and the quantity supplied. The result will be :

#46. Which of the following statements is correct?

#47. The structure of the toothpaste industry in India is best described as

#48. Conditions for equilibrium of a firm are:

#49. The market for the ultimate consumers is known as

#50. Assume that when price is ` 20, the quantity demanded is 9 units, and when price is ` 19, the quantity demanded is 10 units. Based on this information, what is the marginal revenue resulting from an increase in output from 9 units to 10 units

#51. The kinked demand curve model of oligopoly assumes that

#52. A market structure in which many firms sell products that are similar but not identical is known as

#53. If the average cost is higher than the average revenue then the firm incurs _________________

#54. Which of the following is not an essential condition of pure competition?

#55. Under which of the following forms of market structure does a firm have no control over the price of its product?

#56. Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that

#57. Suppose that a sole proprietorship is earning total revenues of ` 1,00,000 and is incurring explicit costs of ` 75,000. If the owner could work for another company for ` 30,000 a year, we would conclude that :

#58. Total revenue =

#59. Example of a commodity said to have an International Market.

#60. Generally, perishable goods like butter, eggs, milk, vegetables etc., will have

#61. Price discrimination is one of the features of ___________

#62. Which of the following is not a characteristic of a perfectly competitive market?

#63. In Economics, the term ‘market’ refers to a:

#64. Which of the following statements is incorrect?

#65. Oligopolistic industries are characterized by:

#66. Which is the first order condition for the profit of a firm to be maximum?

#67. Natural Monopoly arises when

#68. Suppose a firm is producing a level of output such that MR > MC, what should be firm do to maximize its profits?

#69. A purely competitive firm’s supply schedule in the short run is determined by

#70. Which of the following is not a condition of perfect competition?

#71. AR is also known as:

#72. When the monopolist divides the consumers into separate sub markets and charges different prices in different sub-markets it is known as

#73. Price varies by attributes such as location or by Customer Segment is __________ degree of Price Discrimination.

#74. Assume that when Price is ₹10, the quantity demanded is 5 units and when Price is ₹12 the quantity demanded is 4 units .Based on this information, what is the Marginal Revenue resulting from increase in output from 4 units to 5 units

#75. When e = 1 then MR is

#76. Average revenue is the revenue earned

#77. When ________________________________ , we know that the firms are earning just normal profits

#78. Assume that when price is ` 20, the quantity demanded is 15 units, and when price is ` 18, the quantity demanded is 16 units. Based on this information, what is the marginal revenue resulting from an increase in output from 15 units to 16 units?

#79. In the table below what will be equilibrium market price? qno 1 pgno 4.53

#80. If firms in the toothpaste industry have the following market shares, which market structure would best describe the industry? qno 36 pgno 4.59

#81. Assume that consumers’ incomes and the number of sellers in the market for good A both decrease. Based upon this information, we can conclude, with certainty, that the equilibrium:

#82. Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?

#83. Stock Exchange is example of ________ Market:

#84. Average revenue curve is also known as:

#85. What is the shape of the demand curve faced by a firm under perfect competition?

#86. Which of the following statements is false?

#87. Price discrimination will be profitable only if the elasticity of demand in different sub-markets is

#88. A firm encounters its “shutdown point” when:

#89. When an oligopolist individually chooses its level of production to maximize its profits, it charges a price that is

#90. In which form of the market structure is the degree of control over the price of its product by a firm very large?

#91. The firm and the industry are one and the same in _______________

#92. In a very short period market:

#93. For a price-taking firm :

#94. When ________________________________, we know that the firms under perfect competition must be producing at the minimum point of the average cost curve and so there will be productive efficiency

#95. Suppose that, at the profit-maximizing level of output, a firm finds that market price is less than average total cost, but greater than average variable cost. Which of the following statements is correct?

#96. The condition for pure competition is

#97. It is assumed in economic theory that

#98. Sweezy’s Model explains the concept of price rigidity relating to following market form

#99. In the long-run equilibrium of a competitive market, firms operate at

#100. A Monopolist is a

#101. When e > 1 then MR is

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