Question:

One of the essential conditions of perfect competition is

A.

Product Differentiation

B.

Multiplicity of prices for identical product at any one Time

C.

Many sellers and few buyers

D.

Only one price for identical goods at any one time

Answer» d. Only one price for identical goods at any one time

Question:

At the point of equilibrium of a monopolist MC cuts MR curve

A.

From below

B.

from above

C.

at point of equality of AC and AR

D.

None

Answer» a. From below

Question:

Cost of advertisement and salesmanship is called:

A.

Sales cost

B.

Selling cost

C.

Dual price

D.

None of these

Answer» b. Selling cost

Question:

An increase in output in a perfectly competitive and constant cost industry which is in longrun equilibrium will come

A.

entirely from new firms

B.

entirely from existing firms

C.

either entirely from new firms or entirely from existing firms

D.

partly from new firms and partly from existing firms.

Answer» a. entirely from new firms

Question:

Bank rate refers to

A.

Discount rate

B.

Market rate

C.

Rediscount rate

D.

None of the above

Answer» b. Market rate

Question:

In Chamberlin and Kinked demand curve model, the oligoposist

A.

Recognize their interdependence

B.

Do not collude

C.

Tend to keep prices constant

D.

All of the above

Answer» d. All of the above

Question:

Oligopoly is a market situation characterized by

A.

Large number of buyers and sellers

B.

A single seller

C.

Fairly large number of buyers and sellers

D.

A few sellers

Answer» d. A few sellers

Question:

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

Answer» a. Close substitutes

Question:

Find the odd man out with reference to money

A.

Copper

B.

Silver

C.

. Cattles

D.

Gold

Answer» d. Gold

Question:

In the case of ‘creeping inflation’ prices are rising at

A.

Less than 3% per month

B.

Less than 3% per annum

C.

Around 5% per month

D.

Around 5% per annum

Answer» c. Around 5% per month