Question:

The concept of kinked demand curve is related to

A.

Paul M sweezy

B.

Joan robinson

C.

E H Chamberline

D.

E L Edgeworth

Answer» a. Paul M sweezy

Question:

A natural monopoly has a declining ________ over a large range of output

A.

long run marginal cost

B.

short run marginal cost

C.

long run average cost

D.

long run marginal cost

Answer» c. long run average cost

Question:

________ is one organization created from a formal agreement between a group of producers of a good or service, to regulate supply in an effort to regulate or manipulateprices.

A.

industry

B.

firm

C.

monopoly

D.

cartel

Answer» d. cartel

Question:

If a perfectly competitive firm finds that the profit maximizing output level occurs whereprice is equal to marginal cost but is less than average variable cost

A.

the firm will continue to operate in the short run since total revenue exceeds total variable cost but will exit the industry in the long run

B.

the firm will continue to operate in the short run since it has to pay the total fixed cost whether or not it continues to operate

C.

the firm will increase its selling price to raise revenue in order to be able to continue to operate profitably in the short run

D.

the firm will shut down in the short run and exit the industry in the long run if it does not foresee market conditions changing

Answer» d. the firm will shut down in the short run and exit the industry in the long run if it does not foresee market conditions changing

Question:

In a monopsony market there is:

A.

Single seller

B.

single buyer

C.

Two sellers

D.

two buyers

Answer» b. single buyer

Question:

Inflation due to hording

A.

Credit inflation

B.

Scarcity inflation

C.

Profit inflation

D.

None

Answer» b. Scarcity inflation

Question:

In a Perfect competitive market

A.

Firm is the price giver and the industry is a price taker

B.

Firm is the price taker and the industry is a price giver

C.

Both are price makers

D.

Both are price takers

Answer» b. Firm is the price taker and the industry is a price giver

Question:

Which one of the following is not a feature of monopolisticcompetition

A.

Homogeneous products

B.

Differentiated products

C.

Selling cost

D.

No uniform prices

Answer» a. Homogeneous products

Question:

The payment given to the factor labour is known as:

A.

Rent

B.

Wage

C.

Interest

D.

profit

Answer» b. Wage

Question:

The demand curve faced by the a monopolistically competitive firmis very elastic if the degree of product differentiation is

A.

Very low

B.

Very high

C.

Zero

D.

Moderate

Answer» b. Very high