Top 1000+ Solved Fundamentals of Economics and Management MCQ Questions Answer
Q. A firm that makes profit in excess of normal profit is earning
a. Economic profit
b. Costing profit
c. Normal profit
d. Super normal profit
Q. A natural monopoly has declining – over large range of output
a. Long run average cost
b. Short run average cost
c. Long run total cost
d. Long run marginal cost
Q. A monopoly based on sole state ownership of production and distribution network is known as
a. Natural monopoly
b. Technological monopoly
c. Government monopoly
d. Geographical monopoly
Q. The market state that satisfy all the essential features of a perfect competitive market except identity of product is known as
a. Oligopoly
b. Duopoly
c. Monopoly
d. Monopolistic competition
Q. …………….. may start a price war in order to grab a larger share of market
a. Oligopoly
b. Duopolies
c. Monopolist
d. Monopolistic competition
Q. In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes
a. Profits and new firms join the market
b. Profit and bar entry to new firms
c. Makes losses and exit the market
d. Quick profit and disappears
Q. Which of these is associated with a monopolistic competitive market –
a. Product differentiation
b. Homogeneous Product
c. Normal in short run
d. Single buyer
Q. The ideal level of operation for a pure monopoly firm is the level where
a. TR and STC curve are parallel to each other
b. TR = TC
c. TR = Total variable cost
d. TR is less than STC
Q. When the Demand curve of a pure monopoly firm is elastic, MR will be
a. Negative
b. Positive
c. Zero
d. Any of these
Q. In short run a monopolistic competition firm will be in equilibrium where
a. MR = curve intersect SMC curve from above
b. MR curve intersect SMC curve from below
c. MC = AR
d. MR curve intersect SMC from below and P is equal to or more than AVC
Q. In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to
a. Price discrimination
b. Cost effectiveness
c. Banned entry of new firms
d. Sales promotion
Q. In the short run an oligopolistic firm will
a. Make profits
b. Incur losses
c. Just break even
d. Any of these three are possible
Q. A monopoly firm makes more profit because
a. It has ability to choose among price and output combination
b. It can discriminate price
c. It leave the consumer with no consumer surplus
d. it acts as a market leader
Q. Super normal profits occurs when
a. Average revenue is more than average cost
b. Total revenue is maximum
c. Total cost is minimum
d. MC is equal to MR
Q. …………… has excess production capacity in the long run
a. Perfect competition market
b. Monopolistic competition market
c. Oligopolistic market
d. None