Question:

The marker structure which have large number of sellers selling differentiatedproduct is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» c. Monopolistic competition

Question:

Among the following which is not a feature of inflation?

A.

long term process

B.

state of disequilibrium

C.

dynamic in nature

D.

non monetary phenomenon.

Answer» d. non monetary phenomenon.

Question:

ISLM model was basically…………sector model:

A.

Two

B.

One

C.

Three

D.

Four

Answer» a. Two

Question:

If a firm sells its output on a market that is characterized by a single seller and manybuyers of a homogeneous product for which there are no close substitutes and barriers to long-run resource mobility, then the firm is

A.

a monopolist

B.

an oligopolist

C.

a perfect competitor

D.

a monopolistic competitor

Answer» a. a monopolist

Question:

In the long run, which of the following is applicable to a firm undermonopolistic competition

A.

AR = AC

B.

AR > AC

C.

AR < AC

D.

AR = MC

Answer» a. AR = AC

Question:

A monopolist usually earns

A.

Economic profit

B.

Only normal profit

C.

Losses

D.

Profit and losses, which are uncertain

Answer» a. Economic profit

Question:

The theory of monopolistic competition was popularized by

A.

Marshall

B.

Keynes

C.

Chamberlin

D.

Pigou

Answer» c. Chamberlin

Question:

A monopoly is most likely to emerge and be sustained when:

A.

output demand is relatively elastic.

B.

firms have u-shaped, average-total-cost curves.

C.

fixed capital costs are small relative to total costs.

D.

economies of scale are large relative to market demand.

Answer» d. economies of scale are large relative to market demand.

Question:

Under perfect market conditions the individual firm in the industry has control over theprice of the product.

A.

Some

B.

Full

C.

No

D.

None of the above

Answer» c. No

Question:

The large number of firms producing the same commodity ensure that theindividual firm has no control over

A.

Price of the commodity

B.

The quantity of the commodity

C.

Both of the above

D.

None of the above

Answer» c. Both of the above