Question:

Which of the following condition are met in the long run equilibriumof the monopolistic competitor earning only normal profit

A.

MC=AC

B.

P=AC

C.

P=MR

D.

P=MC

Answer» b. P=AC

Question:

Kinked demand curve is found under:

A.

Monopoly

B.

Oligopoly

C.

Perfect competition

D.

Duopoly

Answer» b. Oligopoly

Question:

Oligopoly is characterized by:

A.

A few Sellers

B.

One seller

C.

Large Sellers

D.

All of these

Answer» a. A few Sellers

Question:

Which of the following is not an objective of monetary policy?

A.

Price stability

B.

Balance of Payments equilibrium

C.

Economic growth

D.

Reduction in export

Answer» d. Reduction in export

Question:

If an imperfectly competitive firm is producing a level of output where marginal cost is equal to marginal revenue, marginal revenue is below average variable cost, and price isequal to average total cost, then the firm

A.

should shut down

B.

should decrease output, but should not shut down

C.

should increase output

D.

None of the above is correct

Answer» d. None of the above is correct

Question:

A firm under Perfect Competition is a:

A.

Price maker

B.

Price taker

C.

Monopolist

D.

None of these

Answer» b. Price taker

Question:

Price discrimination is a strategy in

A.

monopoly

B.

perfect competition

C.

monopolistic competition

D.

pure competition

Answer» a. monopoly

Question:

The marker structure with Perfect mobility of factors and products is called

A.

Perfect competition

B.

Monopoly

C.

Monopolistic competition

D.

Oligopoly

Answer» a. Perfect competition

Question:

Under perfectly competitive market an individual seller is a

A.

Price taker

B.

Price maker

C.

Individual seller can influence the price

D.

None of the above

Answer» a. Price taker

Question:

When the perfectly competitive firm and industry are both in longrun equilibrium

A.

P = MR = SMC = LMC

B.

P = MR = SAC = LAC

C.

P = MR =Lowest point on the LAC curve

D.

All of the above

Answer» d. All of the above