Question:

A firm under perfect competition will maximize profits when its

A.

total revenue is equal to its total cost

B.

marginal revenue is equal to its marginal cost

C.

the difference between marginal revenue and marginal cost is the greatest

D.

total cost is greater than total revenue

Answer» b. marginal revenue is equal to its marginal cost

Question:

Railways is an example of :

A.

Simple monopoly

B.

differentiated monopoly

C.

Natural monopoly

D.

Monopsony

Answer» c. Natural monopoly

Question:

Assertion (A) Many oligopolistic industries exhibit an appreciabledegree of Price rigidity or stability Reason (R) Oligopolists face a demand curve that is highly elastic for price increases and less elastic for price reductions

A.

(A) is true but (R) is false.

B.

Both (A) and (R) are false

C.

Both (A) and (R) are true and (R) is the correct explanation of (A)

D.

Both (A) and (R) are true but (R) is not the correct explanation of (A)

Answer» c. Both (A) and (R) are true and (R) is the correct explanation of (A)

Question:

In the short run, a monopolistically competitive firm can have

A.

Abnormal profit

B.

loss

C.

Normal profit

D.

Any of the above are possible

Answer» d. Any of the above are possible

Question:

Demand curve is inelastic under:

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

All of the above

Answer» b. Monopoly

Question:

Wage control is an instrument of —- policy

A.

Fiscal policy

B.

Monetary policy

C.

Incomes policy

D.

None of these

Answer» c. Incomes policy

Question:

The market situation characterized by one buyer is:

A.

Monopsony

B.

Monopoly

C.

Bilateral monopoly

D.

Oligopsony

Answer» a. Monopsony

Question:

Perfect competition is a market situation under which acommodity is sold at:

A.

Uniform price

B.

Different price

C.

Higher price

D.

Lower price

Answer» a. Uniform price

Question:

In India, which law deals with monopolies

A.

fera

B.

fema

C.

mrtp

D.

mnrgea

Answer» c. mrtp

Question:

Selling cost assumes paramount importance in

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

None of the above

Answer» c. Monopolistic competition