Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. Which market model has the least number of firms?
a. monopolistic competition
b. pure competition
c. pure monopoly
d. oligopoly
Q. If the demand curve facing a firm is perfectly elastic, then:
a. its marginal revenue will equal price.
b. its marginal revenue schedule will decrease at an increasing rate.
c. its marginal revenue schedule decreases twice as fast as the demand curve.
d. it can increase its total revenue by lowering the price of its product.
Q. A profit-maximizing firm in the short run will expand output:
a. until marginal cost begins to rise.
b. until total revenue equals total cost.
c. until marginal cost equals average variable cost.
d. as long as marginal revenue is greater than marginal cost.
Q. Price is constant or "given" to the individual firm selling in a purely competitive marketbecause:
a. the firm\s demand curve is downward sloping.
b. there are no good substitutes for the firm\s product.
c. each seller supplies a negligible fraction of total supply.
d. product differentiation is reinforced by extensive advertising.
Q. In pure competition, the marginal revenue of a firm always equals:
a. product price.
b. total revenue.
c. average total cost.
d. marginal cost.
Q. A firm should always continue to operate at a loss in the short run if:
a. the firm will show a profit.
b. the owner enjoys helping her customers.
c. it can cover its variable costs and some of its fixed costs.
d. the firm cannot produce any other products more profitably.
Q. The marker structure in which number of sellers is small withinterdependence is called
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. Oligopoly
Q. The cost incurred to alter the position or slope of demand curve is known as
a. Marginal cost
b. Selling cost
c. Alternate cost
d. Additional cost
Q. Which of the following is a form collusive oligopoly
a. Bilateral monopoly
b. Monopoly
c. cartel
d. Kinked Oligopoly
Q. In the long run, which of the following is applicable to a firm undermonopolistic competition
a. AR = AC
b. AR > AC
c. AR < AC
d. AR = MC
Q. A discriminating monopolist will charge a higher price from whichgroup of customers?
a. Group with more elastic
b. Group with less elastic
c. Group with Unitary Elastic
d. Group with Infinitely Elastic
Q. Perfect price discrimination means that every customer ____________
a. buys the same amount
b. pays the same price
c. contributes the same revenue
d. pays what she thinks the product is worth
Q. Supernormal profit refers to
a. High proportion of net profit
b. Minimum necessary profit to induce an entrepreneur to remain in business
c. Unexpectedly high Profit
d. Residual surplus
Q. Which one of the following is related to the commodity money
a. Stones
b. Cattles
c. Grains
d. All of the above
Q. Which of the following is not related to commodity money
a. All commodities were not uniform in quality
b. It is difficult to store and prevent the loss of value
c. They lacked portability
d. There was no problem of coincidence of wants