Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. In monopolistic competition in long run equilibrium, the price will be equal to:
a. the marginal cost
b. marginal revenue
c. average variable cost
d. average total cost
Q. A major critique of advertising is that
a. it provides information to consumers that they would be better off without
b. it manipulates people\s tastes, leading people to make bad choices
c. it promotes excessive competition among firms in the industry
d. it is usually linked to promotions, which undermine the market\s price
Q. A major argument in favour of advertising is that:
a. it provides information to consumers that allows them to make better choices
b. it helps people reaffirm their tastes and preferences
c. it reduces competition among firms in the industry, leading to lower prices
d. it is usually linked to promotions, which help lower the market\s price
Q. Branding can be good for society because:
a. it allows people to show off the branded goods they use or wear
b. it keeps generic goods from taking over the market
c. it provides useful information to consumers about the quality of branded goods
d. it helps firms enjoy higher prices and profits
Q. Which of the following statements is FALSE?
a. a monopoly is an industry with only one seller
b. an oligopoly is an industry with only a few sellers
c. perfect competition is an industry with many sellers
d. monopolistic competition is an industry with only a few sellers
Q. A bilateral monopoly is a market structure consisting of
a. one buyer
b. one seller
c. many buyers
d. one buyer and one seller
Q. A bilateral monopoly is a market structure consisting of both a ______and a _____
a. oligopoly and monopoly
b. monopoly and monopsony
c. oligopoly and perfect competition
d. monopoly and perfect competition
Q. A ___________occurs in an industry where there is only one producer of a good and onlyone supplier.
a. bilateral monopoly
b. monopoly
c. monopsony
d. duopoly
Q. _______ is situation in which a single company or group owns all or nearly all of themarket for a given type of product or service.
a. monopsony
b. oligopoly
c. perfect competition
d. monopoly
Q. _______ is situation in which a particular market is controlled by a small group of firms.
a. monopsony
b. oligopoly
c. perfect competition
d. monopoly
Q. ________ is a market in which there are only a few large buyers for a product or service.
a. monopsony
b. oligopoly
c. oligopsony
d. monopoly