Top 350+ Solved Micro economics 2 MCQ Questions Answer
Q. Monopolistically competitive firms
a. Are small in size
b. Have small share in the market
c. Are large in the size
d. Both A and B
Q. Selling cost assumes paramount importance in
a. Perfect competition
b. Monopoly
c. Monopolistic competition
d. None of the above
Q. Under monopolistic competition, there can be freedom of entry inthe sense that there is freedom to produce
a. Close substitutes
b. Perfect substitutes
c. Complements
d. None of the above
Q. A firm under monopolistic competition advertise because
a. To compete successfully with rival
b. To lower cost of production
c. To increase revenue and sales
d. Since it cannot raise price
Q. In the case of monopolistic competition,
a. Short run supply curve cannot be defined
b. MR curve cannot be defined
c. AR curve cannot be defined
d. None of the above
Q. Under monopolistic competition, super normal profit arise when
a. AR=AC
b. MR=MC
c. AR>AC
d. AR<AC
Q. Which of the following condition are met in the long run equilibriumof the monopolistic competitor earning only normal profit
a. MC=AC
b. P=AC
c. P=MR
d. P=MC
Q. The term group equilibrium is referred to
a. Duopoly
b. Monopolistic competition
c. Perfect competition
d. Oligopoly
Q. Increase or decrease in the level of production by a monopolistically competitive firm have ------- impact on price and output decisionsof other firms
a. Very significant
b. Significant
c. Small
d. Negligible
Q. Monopolistic competitive firm fixes the price of its product
a. Independent of the price of close substitutes
b. Close to the prices of close substitutes
c. At a very high level
d. None of the above
Q. Under monopolistic competition, an increase in the number of firms producing close substitutes will make the demand curve ofeach firm
a. Inelastic
b. Elastic
c. Downward sloping
d. Perfectly inelastic
Q. The demand curve faced by the a monopolistically competitive firmis very elastic if the degree of product differentiation is
a. Very low
b. Very high
c. Zero
d. Moderate
Q. Which one of the following is not a feature of monopolisticcompetition
a. Homogeneous products
b. Differentiated products
c. Selling cost
d. No uniform prices
Q. The book “The theory of Monopolistic Competition” is written by
a. Alfred Marshal
b. E H Chamberlin
c. Joan Robinson
d. J M Keynes
Q. The book “The Economics of Imperfect Competition” is written by
a. Alfred Marshal
b. E H Chamberlin
c. Joan Robinson
d. J M Keynes