Program: BA Economics, University of Calicut
Course: Micro Economics II (III semester)
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) b
2) Demand curve is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) a
3) Demand curve is elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) c
4) Demand curve is inelastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) b
5) Differentiated but close substitutes exist under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) c
6) Selling cost is insignificant under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) b
7) Few firms exist under:
(a) Perfect competition
(b) Oligopoly
(c) Monopolistic competition
(d) Both perfect and monopolistic competition
Ans) b
8) In which market structure, price and output solution is indeterminate?
(a) Oligopoly
(b) Monopolistic competition
(c) Perfect competition
(d) Monopoly
Ans) a
9) Homogenous product means products are:
(a) Similar
(b) Close substitutes
(c) Quite alike
(d) All of the above
Ans) d
10) Monopoly means:
(a) Single firm
(b) No close substitutes
(c) Barriers to entry
(d) All of the above.
Ans) d
11) ‘Homogenous products’ is a characteristic of:
(a) Perfect competition only
(b) Perfect oligopoly only
(c) Both (a) and (b)
(d) None of the above
Ans) c
12) There is inverse relation between price and demand for the product of a firm under:
(a) Monopoly only
(b) Monopolistic competition only
(c) Both under monopoly and monopolistic competition
(d) Perfect competition only.
Ans) c
13) A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue
will be:
(a) Greater than Average Revenue
(b) Less than Average Revenue
(c) Equal to Average Revenue
(d) Zero
Ans) c
14) Differentiated products is a characteristic of:
(a) Monopolistic competition only
(b) Oligopoly only
(c) Both monopolistic competition and oligopoly
(d) Monopoly
Ans) c
15) Demand curve of a firm is perfectly elastic under:
(a) Perfect competition
(b) Monopoly
(c) Monopolistic competition
(d) Oligopoly
Ans) a
16) Marginal revenue of a firm is constant throughout under:
(a) Perfect competition
(b) Monopolistic competition
(c) Oligopoly
(d) All the above
Ans) a
17) A seller cannot influence the market price under
(a) Perfect Competition
(b) Monopoly
(c) Monopolistic competition
(d) All of the above
Ans) a
18) There are only a few sellers under
(a) Perfect Competition
(b) Monopolistic competition
(c) Monopoly
(d) Oligopoly
Ans) d
19) Under perfect competition, MR curve is:
(a) Horizontal
(b) Vertical
(c) Falling
(d) Rising
Ans) a
20) When AR is above AC, firm earns:
(a) Supernormal profit
(b) Loss
(c) Breakeven point
(d) Minimise losses
Ans) a
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