Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. The best, or optimum, level of output for the pure monopolist occurs at the point where
a. STC is minimum
b. TR = STC
c. TR is maximum
d. the TR and STC curves are parallel.
Q. At the best, or optimum, level of output for the pure monopolist,
a. MR = SMC
b. P = SMC
c. P = lowest SAC
d. P is highest.
Q. If the monopolist incurs losses in the short run, then in the long run
a. the monopolist will go out of business
b. the monopolist will stay in business
c. the monopolist will break even
d. any of the above is possible.
Q. The imposition of a maximum price at the point where the monopolist’s SMC curveintersects the D curve causes the monopolist to
a. break even
b. incur losses
c. make profits
d. any of the above.
Q. Price discrimination is an essential feature of
a. Perfect competition
b. Oligopoly
c. Duopoly
d. monopoly
Q. Under monopoly the slope of AR curve is:
a. Upward sloping
b. downward sloping
c. horizontal
d. None of these
Q. Third degree price discrimination occurs when the monopolist charges different prices forthe same commodity in different
a. Markets
b. places
c. continents
d. countries
Q. Price discrimination is possible:
a. Under any market form
b. only under monopoly
c. only under monopolistic completion
d. only in perfect competition
Q. At the point of equilibrium of a monopolist MC cuts MR curve
a. From below
b. from above
c. at point of equality of AC and AR
d. None
Q. A multiplant monopolist maximizes his profit at the point where:
a. MR = MC1
b. MR = MC2
c. MR1 = MR2
d. MR = MC1 = MC2
Q. For a firm with monopoly power
a. Price equals MC
b. Price is less than MC
c. Price exceeds MC
d. None
Q. Railways is an example of :
a. Simple monopoly
b. differentiated monopoly
c. Natural monopoly
d. Monopsony