Top 150+ Solved Micro Economics analysis MCQ Questions Answer
Q. Zero economic profit includes
a. zero normal profit
b. normal profit
c. super normal profit
d. average profit
Q. Economic efficiency is achieved in the long run in the case of
a. perfect competition
b. monopoly
c. monopolistic competition
d. oligopoly
Q. Consumer surplus will be maximum in the case of
a. perfect competition
b. monopoly
c. monopolistic competition
d. oligopoly
Q. The short-run supply curve of a perfectly competitive firm is given by
a. rising portion of the mc curve over and above the shut-down point
b. rising portion of the mc curve over and above the break-even point
c. rising portion of the mc curve over and above the ac curve
d. rising portion of the mc curve
Q. When the perfectly competitive firm and industry are both in longrun equilibrium
a. p = mr = smc = lmc
b. p = mr = sac = lac
c. p = mr =lowest point on the lac curve
d. all of the above
Q. Monopolistic competition is characterized by
a. few firms’ selling differentiated products
b. many firms selling homogeneous product
c. few firms selling homogeneous product
d. many firms selling differentiated products
Q. The theory of monopolistic competition was popularized by
a. marshall
b. keynes
c. chamberlin
d. pigou
Q. A monopolistically competitive market is distinguished from perfectcompetition by the fact that
a. few sellers
b. it has few buyers
c. it deals with differentiated products
d. none of the above
Q. Excess capacity is a hallmark of
a. perfect competition
b. monopoly
c. oligopoly
d. monopolistic competition
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