Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. The price rigidity in an oligopolistic market is explained by _______
a. price discrimination
b. product differentiation
c. bundling
d. kinked demand curve
Q. Product differentiation is seen in
a. perfect competition
b. monopoly
c. monopolistic competition
d. pure competition
Q. Price discrimination is a strategy in
a. monopoly
b. perfect competition
c. monopolistic competition
d. pure competition
Q. Suppose a competitive firm produces 100 units of X for a price of Rs.10 a unit. The firmis employing labour and capital such that the marginal physical product of labour and capital is 20 and 5 and the prices paid to labour and capital are Rs. 60 and Rs. 40 respectively. How would you characterize the firm
a. the firm is in long-run equilibrium
b. the firm is earning excess profits
c. the firm should expand production
d. the firm should contract production
Q. That the perfectly competitive firm will pick a combination of inputs where the ratio ofeach input’s marginal product to its price is equal follows from
a. the need to use inputs in fixed proportions
b. the backward bending supply curve of labour
c. cost minimization
d. the attempt to achieve a target rate of return
Q. If an additional worker costs you Rs. 15 per hour, and that person can add 25 units of output to the firm, you should hire that person as long as
a. 25 remains above rs.15
b. 25/rs.15 is greater than zero
c. rs.15/25 is great than zero
d. the value of the marginal product is above rs.15 .........................
Q. Entry is restricted under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Demand curve is perfectly elastic under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Demand curve is elastic under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Demand curve is inelastic under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Differentiated but close substitutes exist under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Selling cost is insignificant under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. Few firms exist under:
a. Perfect competition
b. Oligopoly
c. Monopolistic competition
d. Both perfect and monopolistic competition
Q. In which market structure, price and output solution is indeterminate?
a. Oligopoly
b. Monopolistic competition
c. Perfect competition
d. Monopoly
Q. Homogenous product means products are:
a. Similar
b. Close substitutes
c. Quite alike
d. None of the above