Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. It is assumed that the cost curves of all the firms in themonopolistic competition are
a. Different due to product differentiation
b. Never considered in equilibrium
c. Never formulated
d. Same in spite of product differentiation
Q. Free entry into monopolistically competitive market ensures that all firms will produce at the lowest point of LAC
a. Always
b. Sometimes
c. Never
d. Cannot say
Q. Under monopolistic competition, the long run equilibrium of thefirm is established at the
a. Minimum point of LAC
b. Point where LAC is still falling
c. Point where LAC is rising
d. Minimum point of LMC
Q. In short run a firms in monopolistic competition
a. Always earns profit
b. Incurs loss
c. Earns normal profit only
d. May earn normal profit, abnormal profit or incur losses
Q. In long run all the firms in the monopolistic competition
a. Always earns profit
b. Incurs loss
c. Earns normal profit only
d. May earn normal profit, abnormal profit or incur losses
Q. The short run equilibrium level of output of the monopolisticcompetitor is given by
a. Price = MC
b. Price= AC
c. MC=MR
d. P=MR
Q. When a group of monopolistic competition attains the equilibrium,the firms in the group
a. Charge different prices, but produce identical outputs
b. Produce different output, but charge the same price
c. Charge different price and produce different output
d. None of the above
Q. The elasticity of average revenue curve of the monopolisticcompetitor, depends on
a. The extent of product differentiation
b. The number of firms
c. Number of buyers
d. Both A & B
Q. The best or optimum level of output for the pure monopolist
a. MR=MC
b. P=MC
c. P=AC
d. Highest P
Q. Which type of competition leads to maximum exploitation ofconsumer
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. Oligopoly
Q. In the short run, the monopolist
a. Breaks even
b. Incurs loss
c. Makes profit
d. Any of the above
Q. The demand for the product of a monopoly firm is
a. Inelastic
b. Elastic
c. Unitary elastic
d. Perfectly inelastic
Q. If the monopolist incurs loss in the short run, then in the long run
a. The monopolist go out of business
b. The monopolist will stay in the business
c. The monopolist break even
d. Any of the above
Q. Which of the form of monopoly regulation is the most advantages tothe consumer
a. Price control
b. Lump sum tax
c. Per unit tax
d. All of the above