Question:

Monopolist can fix

A.

Both price and output

B.

Neither price and output

C.

Either price and output

D.

None of the above

Answer» c. Either price and output

Question:

Entry is restricted under:

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» b. Monopoly

Question:

If one perfectly competitive firm increases its level of output, market supply

A.

will increase and market price will fall

B.

will increase and market price will rise

C.

and market price will both remain constant

D.

will decrease and market price will rise

Answer» c. and market price will both remain constant

Question:

Price leadership is a feature of:

A.

Monopoly

B.

Oligopoly

C.

Duopoly

D.

Monopolistic Competition

Answer» b. Oligopoly

Question:

Breakeven point means:

A.

AR = AC

B.

TR = TC

C.

No profit, no loss

D.

All of the above

Answer» d. All of the above

Question:

The imposition of a maximum price at the point where the monopolist’s SMC curveintersects the D curve causes the monopolist to

A.

break even

B.

incur losses

C.

make profits

D.

any of the above.

Answer» d. any of the above.

Question:

Price discrimination is an essential feature of

A.

Perfect competition

B.

Oligopoly

C.

Duopoly

D.

monopoly

Answer» d. monopoly

Question:

Perfect price discrimination means that every customer ____________

A.

buys the same amount

B.

pays the same price

C.

contributes the same revenue

D.

pays what she thinks the product is worth

Answer» d. pays what she thinks the product is worth

Question:

Marginal revenue curve under perfect competition is

A.

Upward sloping

B.

Downward sloping

C.

Horizontal straight line

D.

Vertical straight line

Answer» c. Horizontal straight line

Question:

The diagram depicting monopolistic competition in the short run:

A.

is very similar to the short run monopoly diagram

B.

is very similar to the short run perfect competition diagram

C.

is very similar to the short run oligopoly diagram

D.

is completely different to the diagrams of all the other types of markets

Answer» a. is very similar to the short run monopoly diagram