Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. The following are conditions of perfect competition except
a. Sellers are large in number
b. Single buyer
c. Commodity produced is homogenous
d. Freedom to Entry and exit
Q. The condition of short run equilibrium under perfect competition is
a. MC=MR
b. AC=MR
c. AC=AR
d. AR=Selling cost
Q. The large number of firms producing the same commodity ensure that the individual firmhas no control over
a. Price of the commodity
b. The quantity of the commodity
c. Both of the above
d. None of the above
Q. Individual firm has no control on the price of the commodity in the market is a condition of
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. Bilateral monopoly
Q. In a Perfect competitive market
a. Firm is the price giver and the industry is a price taker
b. Firm is the price taker and the industry is a price giver
c. Both are price makers
d. Both are price takers
Q. One of the essential conditions of perfect competition is
a. Product Differentiation
b. Multiplicity of prices for identical product at any one Time
c. Many sellers and few buyers
d. Only one price for identical goods at any one time
Q. Under perfect market conditions the individual firm in the industry has control over theprice of the product.
a. Some
b. Full
c. No
d. None of the above
Q. The condition of short run equilibrium under perfect competition is
a. MC=MR
b. MC cuts MR from below
c. MC is rising when it cuts AR
d. All the above
Q. Under perfect market conditions mobility of resources and products are
a. Ensured
b. Not ensured
c. Not considered
d. None of the above
Q. A firm under perfect competitions shall be in equilibrium when marginal cost will be equal to marginal revenue and marginal cost curve is still
a. Declining
b. Rising
c. Constant
d. None of the above
Q. Cross elasticity of demand under Perfect competition is?
a. Zero
b. Infinitely elastic
c. Highly elastic
d. Highly inelastic
Q. Which of the following is not a type of market structure?
a. Competitive monopoly
b. Oligopoly
c. Perfect competition
d. All of the above are types of market structures.
Q. If the market demand curve for a commodity has a negative slope then the market structuremust be
a. perfect competition
b. monopoly
c. imperfect competition
d. The market structure cannot be determined from the information given
Q. If a firm sells its output on a market that is characterized by many sellers and buyers, a homogeneous product, unlimited long-run resource mobility, and perfect knowledge, thenthe firm is a
a. a monopolist
b. an oligopolist
c. a perfect competitor
d. a monopolistic competitor
Q. If a firm sells its output on a market that is characterized by a single seller and manybuyers of a homogeneous product for which there are no close substitutes and barriers to long-run resource mobility, then the firm is
a. a monopolist
b. an oligopolist
c. a perfect competitor
d. a monopolistic competitor