Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. The monopolist who is in
a. Short run equilibrium will also be in long run equilibrium
b. Long run equilibrium will also be in short run equilibrium
c. Long run equilibrium may or may not be in short run equilibrium
d. None of the above
Q. In long run the monopolist can earn abnormal profit because of
a. Blocked entry
b. High selling price
c. Low cost
d. Economies of scale
Q. The market in which there is a single seller is called
a. Oligopoly
b. Monopsony
c. Monopoly
d. Nine of the above
Q. Discriminating monopoly is possible if two markets have
a. Differing elasticity of demand
b. Differing average cost
c. Same elasticity
d. Different average cost
Q. Monopolist can fix
a. Both price and output
b. Neither price and output
c. Either price and output
d. None of the above
Q. A discrimination monopolist charges in a market
a. Lower prices if it has lower elasticity
b. Higher prices if it has lower elasticity
c. Lower prices if it has higher elasticity
d. Cannot say
Q. A firm practicing price discrimination will be
a. Changing qualities of the product
b. Buying from the cheapest market
c. Buying from firms
d. Charging different prices in different markets
Q. The best level of output for the monopolist is
a. AC is minimum
b. TC=TR
c. TR and TC are parallel
d. TR is maximum
Q. If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree pricediscrimination
a. Will increase his TR and total profit
b. Can increase his TR and profit
c. Cannot increase his TR and profit
d. Will charge different prices in different market
Q. Under pure monopoly, there will be
a. No distinction between firm and industry
b. One firm no industry
c. No firm one industry
d. Very few firms
Q. Monopolist will not produce that portion of demand curve where theelasticity of demand
a. Equal to unity
b. Less than unity
c. Greater than zero
d. None of the above
Q. Under monopoly, the equilibrium price is
a. Equal to MC
b. Less than MC
c. More than MC
d. Equal to AC
Q. The cross elasticity of demand for the monopolist product is
a. Very low
b. Moderate
c. High
d. Very high