Top 150+ Solved Mathematical Economics MCQ Questions Answer
Q. In an input-output matrix, the principal diagonal of this matrix represents the amount of inputeach industry takes from ___output.
a. other industry’s
b. government sector’s
c. household sector’s
d. its own output
Q. P = a – bQ is the demand cure of a monopolist. Which of the following statements istrue?
a. AR & MR are equal
b. The rate of decline of MR is twice the rate of decline of AR
c. The demand curve has unit elasticity
d. slope of MR is zero.
Q. The best or optimum level of output for a perfectly competitive firm is given by the point:
a. MR = AC
b. MR = MC
c. MR exceeds MC by the greater amount
d. MR = MC and MC is rising
Q. In a monopoly, marginal revenue is:
a. equal to AR
b. less than AR
c. more than AR
d. initially less than AR then more than AR
Q. A price discriminating Monopolist is considered more efficient than a single pricesmonopolist because:
a. a price discriminating Monopolist knows its consumers better
b. a price discriminating Monopolist can set prices more efficiently
c. a price discriminating Monopolist produces a higher level of output
d. a price discriminating Monopolist can produce it’s output at a lower cost
Q. One difference between perfect competition and monopolistic competition is that:
a. In perfect competition, the products are slightly differentiated between firms
b. There are a larger number of firms in monopolistic competition
c. There are a smaller number of firms in perfectly competitive industries
d. Firms in monopolistic competition have some degree of market power
Q. A perfectly competitive firm should reduce output or shut down in the short run if marketprice is equal to marginal cost and price is:
a. greater than average total cost
b. less than average total cost
c. greater than average variable cost
d. less than average variable cost
Q. The market demand curve for a perfectly competitive industry is QD = 12 - 2P. The marketsupply curve is QS = 3 + P. The market will be in equilibrium if:
a. P = 6 and Q =
b. P = 3 and Q = 6
c. P = 4 and Q = 4
d. P = 5 and Q = 2
Q. In the short run, a monopolist will shut down if it is producing a level of output wheremarginal revenue is equal to short-run marginal cost and price is:
a. less than average variable cost
b. greater than average variable cost.
c. less than average total cost
d. greater than average total cost