Top 350+ Solved Micro economics 2 MCQ Questions Answer

a. Few sellers

b. A differentiated product

c. Easy entry into and exit from the industry

d. All of the above

a. perfectly elastic

b. elastic

c. unit elastic

d. inelastic

a. should shut down

b. should decrease output, but should not shut down

c. should increase output

d. None of the above is correct

a. an activity undertaken by a firm to increase demand

b. a problem with quality control that tends to decrease demand

c. an activity undertaken by a firm to make demand more price inelastic

d. None of the above

a. It is difficult to define a monopolistically competitive market and to determine the firms and products that comprise it

b. When product differentiation is slight, each firm\s demand curve is nearly horizontal so the perfectly competitive solution provides an adequate approximation to the monopolistically competitive solution

c. When there are strong brand preferences and few producers of many differentiated products, or when there are many producers but only a few compete as rivals for any given consumer, then the oligopoly solution provides an adequate approximation to the monopolistically competitive solution

d. All of the above are correct

a. The automobile industry

b. The steel industry

c. The car repair industry

d. The electrical generating industry

a. Monopoly

b. Perfect competition

c. Monopolistic competition

d. Oligopoly

a. Single seller market

b. single buyer market

c. single buyer and seller

d. None

a. Markets

b. places

c. continents

d. countries