Top 150+ Solved Micro Economics analysis MCQ Questions Answer
Q. When a group of monopolistic competition attains the equilibrium,the firms in the group
a. charge different prices, but produce identical outputs
b. produce different output, but charge the same price
c. charge different price and produce different output
d. none of the above
Q. The elasticity of average revenue curve of the monopolisticcompetitor, depends on
a. the extent of product differentiation
b. the number of firms
c. number of buyers
d. both a & b
Q. Under monopolistic competition, the demand curve of the product of an individual firm depends on the nature and prices of closesubstitutes
a. true
b. false
c. not always
d. depends on the nature of the product
Q. The best or optimum level of output for the pure monopolist
a. mr=mc
b. p=mc
c. p=ac
d. highest p
Q. Which type of competition leads to maximum exploitation ofconsumer
a. perfect competition
b. monopoly
c. monopolistic competition
d. oligopoly
Q. In the short run, the monopolist
a. breaks even
b. incurs loss
c. makes profit
d. any of the above
Q. The demand for the product of a monopoly firm is
a. inelastic
b. elastic
c. unitary elastic
d. perfectly inelastic
Q. If the monopolist incurs loss in the short run, then in the long run
a. the monopolist go out of business
b. the monopolist will stay in the business
c. the monopolist break even
d. any of the above
Q. Which of the form of monopoly regulation is the most advantages tothe consumer
a. price control
b. lump sum tax
c. per unit tax
d. all of the above
Q. The monopolist who is in
a. short run equilibrium will also be in long run equilibrium
b. long run equilibrium will also be in short run equilibrium
c. long run equilibrium may or may not be in short run equilibrium
d. none of the above
Q. In long run the monopolist can earn abnormal profit because of
a. blocked entry
b. high selling price
c. low cost
d. economies of scale
Q. The market in which there is a single seller is called
a. oligopoly
b. monopsony
c. monopoly
d. nine of the above