Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. ‘Homogenous products’ is a characteristic of:
a. Perfect competition only
b. Perfect oligopoly only
c. Both (a) and (b)
d. None of the above
Q. There is inverse relation between price and demand for the product of a firm under:
a. Monopoly only
b. Monopolistic competition only
c. Both under monopoly and monopolistic competition
d. Perfect competition only
Q. A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenuewill be:
a. Greater than Average Revenue
b. Less than Average Revenue
c. Equal to Average Revenue
d. Zero
Q. Differentiated products is a characteristic of:
a. Monopolistic competition only
b. Oligopoly only
c. Both monopolistic competition and oligopoly
d. Monopoly
Q. Demand curve of a firm is perfectly elastic under:
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. Oligopoly
Q. Marginal revenue of a firm is constant throughout under:
a. Perfect competition
b. Monopolistic competition
c. Oligopoly
d. All the above
Q. A seller cannot influence the market price under
a. Perfect Competition
b. Monopoly
c. Monopolistic competition
d. All of the above
Q. There are only a few sellers under
a. Perfect Competition
b. Monopolistic competition
c. Monopoly
d. Oligopoly
Q. When AR is above AC, firm earns:
a. Supernormal profit
b. Loss
c. Breakeven point
d. Minimise losses
Q. When AR = AC, firm is at:
a. Supernormal profit point
b. Loss making point
c. Breakeven point
d. Minimise losses point
Q. When AC is more than AR, what is the firm doing?
a. Making supernormal profit
b. Incurring loss
c. Having breakeven point
d. Minimising losses
Q. When AR passes through some point between minimum AVC and AC, it is called:
a. Supernormal profit
b. Loss
c. Breakeven point
d. Minimising losses
Q. When AR passes through minimum point of AVC, it is called:
a. Breakeven point
b. Shutdown point
c. Normal profit point
d. Supernormal profit point