Forms of Market Mcq’s
Q1. In which kind of market, a firm is a price taker?
- Perfect competition
- Monopoly
- Monopolistic competition
- Oligopoly
Ans. Perfect competition
Q2. A firm can sell more only at a lower price.’ To which market would you relate this statement?
- Perfect competition
- Monopoly
- Oligopoly
- Duopoly
Ans. Monopoly
Q3. In case of perfect competition:
- A firm is able to charge higher price
- A firm is able to charge uniform price
- A firm is able to sell any amount at the prevailing price
- Both (b) and (c)
Ans. Both (b) and (c)
Q4. Firm’s demand curve under monopoly shows:
- No relationship between price and demand
- Inverse relationship between price and demand
- Positive relationship between price and demand
- None of these
Ans. The inverse relationship between price and demand
Q5. Charging different prices from different buyers for the same good is called:
- Price extension
- Price contraction
- Price discrimination
- Price control
Ans. Price discrimination
Q6. Under monopoly, a firm has:
- Partial control over price
- Full control over price
- No control over price
- None of these
Ans. Full control over price
Q7. Which market induces cartels?
- Perfect competition
- Monopoly
- Oligopoly
- None of these
Ans. Oligopoly
Q8. In the context of monopolistic competition, which one of the following statements is correct?
- Firm has full control over price
- Horizontal straight line demand curve of the firm
- Freedom of entry and exit
- Selling costs do not exist
Ans. Freedom of entry and exit
Q9. Which characteristic of monopolistic competition is similar to monopoly?
- One seller and large number of buyers
- Full control over price
- Freedom of entry and exit
- Demand curve slopes downward
Ans. Demand curve slopes downward
Q10. If the demand curve of a firm is a horizontal straight line:
- A firm can sell any amount at the existing price’
- A firm can sell only a specified amount at the existing price
- All firms will sell equal amount of a commodity
- Firms can differentiate their product
Ans. A firm can sell any amount at the existing price
Q11. A firm can earn supernormal profits even in the long run under:
- Perfect competition
- Monopoly
- Monopolistic competition
- All of these
Ans. Monopoly
Q12. Compared with monopolistic competition, a firm’s demand curve under monopoly is:
- Equally elastic
- Less elastic
- More elastic
- Infinitely elastic
Ans. Less elastic
Q13. In monopolistic competition, the products are:
- Homogeneous only
- Homogeneous supported with advertisement
- Differentiated only
- Differentiated supported with advertisement
Ans. Differentiated supported with advertisement
Q14. The AR curve and industry demand curve are the same in the case of:
- Monopoly
- Oligopoly
- Perfect competition
- None of these
Ans. Monopoly
Q15. In the context of oligopoly, which one of the following in incorrect?
- Small number of big firms
- Perfect knowledge among the buyers
- Indeterminate firm’s demand curve
- Non price competition
Ans. Indeterminate firm’s demand curve
Q16. Under collusive oligopoly price is often decided by:
- The industry
- The firm
- Price leader
- None of these
Ans. Price leader
Q17. Homogeneous products are sold under:
- Collusive oligopoly
- Non- collusive oligopoly
- Perfect oligopoly
- Imperfect oligopoly
Ans. Perfect oligopoly
Q18. A market situation in which there are only two producers is called:
- Monopoly
- Oligopoly
- Duopoly
- None of these
Ans. duopoly