Top 150+ Solved Micro Economics analysis MCQ Questions Answer

From 1 to 15 of 125

Q. Which of the following industry is most closely approximates theperfectly competitive model.

a. automobiles

b. cigarette

c. newspaper

d. wheat farming

  • d. wheat farming

Q. Under perfectly competitive market an individual seller is a

a. price taker

b. price maker

c. individual seller can influence the price

d. none of the above

  • a. price taker

Q. Uniform price is a feature of

a. perfect competition

b. monopoly

c. monopolistic competition

d. oligopoly

  • a. perfect competition

Q. Which of the following is not a feature of a perfectly competitivemarket

a. large number of buyers and sellers

b. homogeneous product

c. group behaviour

d. perfect competition

  • c. group behaviour

Q. A perfectly competitive firm gets only normal profit when

a. mc = mr

b. ac = ar

c. ac < ar

d. mc = ar

  • b. ac = ar

Q. Which one of the following is a feature of a perfect competition

a. group behavior

b. selling cost

c. homogeneous product

d. differentiated product

  • c. homogeneous product

Q. Average revenue curve under perfect competition is

a. upward sloping

b. downward sloping

c. horizontal straight line

d. vertical straight line

  • c. horizontal straight line

Q. Marginal revenue curve under perfect competition is

a. upward sloping

b. downward sloping

c. horizontal straight line

d. vertical straight line

  • c. horizontal straight line

Q. Average revenue curve under imperfect competition is

a. upward sloping

b. downward sloping

c. horizontal straight line

d. vertical straight line

  • b. downward sloping

Q. Marginal revenue curve under imperfect competition is

a. upward sloping

b. downward sloping

c. horizontal straight line

d. vertical straight line

  • b. downward sloping

Q. Perfect competition prevails when the demand for the output ofeach producer is

a. elastic

b. perfectly elastic

c. inelastic

d. perfectly inelastic

  • d. perfectly inelastic

Q. Equilibrium price is determined under perfect competition by

a. the market demand

b. the market supply

c. the interaction between market demand and market supply

d. none of the above

  • c. the interaction between market demand and market supply

Q. In the market period, market supply curve is

a. perfectly elastic

b. perfectly inelastic

c. elastic

d. inelastic

  • b. perfectly inelastic

Q. Given the supply of a commodity, in the market period, the price ofa commodity is determined by

a. the market demand curve alone

b. the market supply curve alone

c. the market demand curve and the market supply curve

d. none of the above

  • a. the market demand curve alone

Q. Total profit is maximum when

a. total revenue is equal to total cost

b. total revenue is greater than total cost

c. the positive difference between total revenue and total costs is largest.

d. all of the above

  • c. the positive difference between total revenue and total costs is largest.
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