Question:

Monopoly means:

A.

Single firm

B.

No close substitutes

C.

Barriers to entry

D.

All of the above

Answer» d. All of the above

Question:

Monopsony refers to

A.

Single seller

B.

A few sellers

C.

Single buyer

D.

A few buyers

Answer» c. Single buyer

Question:

When the perfectly competitive firm but not the industry is in long-run equilibrium,

A.

P = MR = SMC = SAC

B.

P = MR = LMC = LAC

C.

P = MR = SMC = LMC = SAC =LAC

D.

P = MR = SMC = LMC = SAC = lowest point on the LAC curve.

Answer» c. P = MR = SMC = LMC = SAC =LAC

Question:

Individual firm has no control on the price of the commodity in the market is a condition of

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Bilateral monopoly

Answer» a. Perfect competition

Question:

Selling cost is a feature of :

A.

Perfect Competition

B.

Monopoly

C.

Monopolistic Competition

D.

Oligopoly

Answer» c. Monopolistic Competition

Question:

If a firm sells its output on a market that is characterized by few sellers and many buyersand limited long-run resource mobility, then the firm is

A.

a monopolist

B.

an oligopolist

C.

a perfect competitor

D.

a monopolistic competitor

Answer» b. an oligopolist

Question:

The demand curve for a perfectly competitive firm

A.

slopes downward as the quantity demanded increases as the firm lowers price

B.

is a horizontal, perfectly elastic demand curve at the market price

C.

is a straight, downward sloping curve that is price elastic at higher prices and price inelastic as price falls and approaches zero

D.

both (b) and (c)

Answer» b. is a horizontal, perfectly elastic demand curve at the market price

Question:

Investment Multiplier explains measures the change income as result of change in:

A.

Saving

B.

Wealth

C.

Employment

D.

Investment.

Answer» c. Employment

Question:

Which market model has the least number of firms?

A.

monopolistic competition

B.

pure competition

C.

pure monopoly

D.

oligopoly

Answer» c. pure monopoly

Question:

Differentiated products is a characteristic of:

A.

Monopolistic competition only

B.

Oligopoly only

C.

Both monopolistic competition and oligopoly

D.

Monopoly

Answer» c. Both monopolistic competition and oligopoly