420+ Micro economics 2 Solved MCQs

1.

Which market model has the least number of firms?

A. monopolistic competition
B. pure competition
C. pure monopoly
D. oligopoly
Answer» C. pure monopoly
2.

If the demand curve facing a firm is perfectly elastic, then:

A. its marginal revenue will equal price.
B. its marginal revenue schedule will decrease at an increasing rate.
C. its marginal revenue schedule decreases twice as fast as the demand curve.
D. it can increase its total revenue by lowering the price of its product.
Answer» A. its marginal revenue will equal price.
3.

A profit-maximizing firm in the short run will expand output:

A. until marginal cost begins to rise.
B. until total revenue equals total cost.
C. until marginal cost equals average variable cost.
D. as long as marginal revenue is greater than marginal cost.
Answer» D. as long as marginal revenue is greater than marginal cost.
4.

Price is constant or "given" to the individual firm selling in a purely competitive market because:

A. the firm\s demand curve is downward sloping.
B. there are no good substitutes for the firm\s product.
C. each seller supplies a negligible fraction of total supply.
D. product differentiation is reinforced by extensive advertising.
Answer» C. each seller supplies a negligible fraction of total supply.
5.

In pure competition, the marginal revenue of a firm always equals:

A. product price.
B. total revenue.
C. average total cost.
D. marginal cost.
Answer» A. product price.
6.

A firm should always continue to operate at a loss in the short run if:

A. the firm will show a profit.
B. the owner enjoys helping her customers.
C. it can cover its variable costs and some of its fixed costs.
D. the firm cannot produce any other products more profitably.
Answer» C. it can cover its variable costs and some of its fixed costs.
7.

The purely competitive firm's supply curve:

A. is perfectly inelastic in the short run.
B. is horizontal in the long run.
C. is upward sloping when some inputs are fix
Answer» C. is upward sloping when some inputs are fix
8.

Which is true of normal profits

A. they are necessary to keep a firm in the industry in the long run.
B. they are zero under pure competition in the long run.
C. they are excluded from a firm\s costs of production.
D. they are greater than the opportunity cost to the firm.
Answer» A. they are necessary to keep a firm in the industry in the long run.
9.

The representative firm in a purely competitive industry:

A. will always earn a profit in the short run.
B. may earn either an economic profit or a loss in the long run.
C. will always earn an economic profit in the long run.
D. will earn an economic profit of zero in the long run.
Answer» D. will earn an economic profit of zero in the long run.
10.

Allocative efficiency occurs when the:

A. minimum of average total cost equals average revenue.
B. minimum of average total cost equals marginal revenue.
C. marginal cost equals the marginal benefit to society.
D. marginal revenue equals marginal benefit to society.
Answer» C. marginal cost equals the marginal benefit to society.
11.

When a purely competitive firm is in long-run equilibrium, price is equal to:

A. marginal cost, but may be greater or less than average cost.
B. minimum average cost, and also to marginal cost.
C. minimum average cost, but may be greater or less than marginal cost.
D. marginal revenue, but may be greater or less than both average and marginal cost.
Answer» B. minimum average cost, and also to marginal cost.
12.

Under conditions of pure monopoly:

A. there are close substitutes.
B. there is no advertising.
C. the firm is a price taker.
D. entry is blocked.
Answer» D. entry is blocked.
13.

A monopoly is most likely to emerge and be sustained when:

A. output demand is relatively elastic.
B. firms have u-shaped, average-total-cost curves.
C. fixed capital costs are small relative to total costs.
D. economies of scale are large relative to market demand.
Answer» D. economies of scale are large relative to market demand.
14.

Which is a barrier to entry?

A. patents
B. revenue maximization
C. profit maximization
D. elastic product demand
Answer» A. patents
15.

The pure monopolist who is nondiscriminating must decrease price on all units of a product sold in order to sell additional units. This explains why:

A. there are barriers to entry in pure monopoly.
B. a monopoly has a perfectly elastic demand curve.
C. marginal revenue is less than average revenue.
D. total revenues are greater than total costs at the profit maximizing level of output.
Answer» C. marginal revenue is less than average revenue.
16.

A nondiscriminating monopolist will find that marginal revenue:

A. exceeds average revenue or price.
B. is identical to price.
C. is sometimes greater and sometimes less than price.
D. is less than average revenue or price.
Answer» D. is less than average revenue or price.
17.

At the profit-maximizing level of output, a monopolist will always operate where:

A. price is greater than marginal cost.
B. price is greater than average revenue.
C. average total cost equals marginal cost.
D. total revenue is greater than total cost.
Answer» A. price is greater than marginal cost.
18.

In the short run, a monopolist's profits:

A. may be positive, negative, or zero.
B. are positive because of the monopolist\s market power.
C. are positive if the monopolist\s elasticity of demand is less than 1.
D. are positive if the monopolist\s selling price is above average variable cost.
Answer» A. may be positive, negative, or zero.
19.

Monopolists are said to be allocatively inefficient because:

A. they produce where mr > mc.
B. at the profit-maximizing output price is greater than avc.
C. they produce only the type of product they desire and do not consider the consumer.
D. at the profit-maximizing output the marginal benefit to society of additional output is
Answer» D. at the profit-maximizing output the marginal benefit to society of additional output is
20.

The economic incentive for price discrimination depends on:

A. prejudices of business managers.
B. differences among sellers\ costs.
C. a desire to evade antitrust legislation.
D. differences among buyers\ demand elasticities.
Answer» D. differences among buyers\ demand elasticities.
21.

Which would definitely not be an example of price discrimination?

A. a theater charges children less than adults for a movie.
B. universities charge higher tuition for out-of-state residents.
C. a doctor charges for services according to the income of patients.
D. an electric power company charges less for electricity used during off-peak hours when
Answer» D. an electric power company charges less for electricity used during off-peak hours when
22.

A market is clearly NOT perfectly competitive if which of the following is true in equilibrium

A. price exceeds marginal cost.
B. price exceeds average variable cost.
C. price exceeds average fixed cost.
D. price equals opportunity cost
Answer» A. price exceeds marginal cost.
23.

If a perfectly competitive industry is in long-run equilibrium, which of the following is most likely to be true

A. some firms can be expected to leave the industry.
B. individual firms are not operating at the minimum points on their average total cost curves.
C. firms are earning a return on investment that is equal to their opportunity costs.
D. some factors are not receiving a return equal to their opportunity costs.
Answer» C. firms are earning a return on investment that is equal to their opportunity costs.
24.

Which of the following is NOT a characteristic of a competitive market

A. it has many buyers
B. it has many sellers
C. the products traded are identical
D. firms set the price (price makers)
Answer» D. firms set the price (price makers)
25.

Which of the following statements is true, regarding the revenues of a firm under perfect competition

A. the marginal revenue and the average revenue are equal to the price
B. the marginal revenue is greater than the average revenue
C. the marginal revenue is greater than the total revenue
D. the total revenue is less than the average revenue
Answer» A. the marginal revenue and the average revenue are equal to the price
26.

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
27.

The short-run supply curve of a firm in perfect competition is the segment of its:

A. marginal cost curve that lies above the minimum average total cost
B. marginal revenue curve that lies above the minimum average total cost
C. marginal cost curve that lies above the minimum average variable cost
D. marginal revenue curve that lies above the minimum average variable cost
Answer» C. marginal cost curve that lies above the minimum average variable cost
28.

In perfect competition the shutdown point is defined by

A. where price = avc
B. where price = ac
C. where price = mc
D. when the firm starts to incur loss
Answer» A. where price = avc
29.

The demand curve faced by a monopoly is:

A. vertical
B. horizontal
C. upward sloping
D. downward sloping
Answer» D. downward sloping
30.

A monopoly is a ________

A. price taker
B. price accepter
C. price maker
D. price neutral
Answer» C. price maker
31.

A monopoly is a ________, therefore the demand curve it faces is ________

A. price taker, downward-sloping
B. price taker, horizontal
C. price setter, downward-sloping
D. price setter, horizontal
Answer» C. price setter, downward-sloping
32.

As output increases in a monopoly, the firm's total revenue:

A. first increases and then decreases
B. first decreases and then increases
C. increases continuously
D. decreases continuously
Answer» A. first increases and then decreases
33.

Marginal revenue in a monopoly is:

A. always greater than the price
B. always equal to the price
C. always smaller than the price
D. sometimes greater and sometimes smaller than the price
Answer» C. always smaller than the price
34.

Which of the following statements is true regarding a profit maximizing monopoly

A. it will cause a deadweight loss
B. it will produce less than perfect competition
C. it will sell at a higher price than perfect competition
D. all of the above
Answer» D. all of the above
35.

In India, which law deals with monopolies

A. fera
B. fema
C. mrtp
D. mnrgea
Answer» C. mrtp
36.

Which of the following is NOT a characteristic of monopolistic competition?

A. there are many sellers
B. there are many buyers
C. everybody is perfectly informed
D. the goods are identical
Answer» D. the goods are identical
37.

The diagram depicting monopolistic competition in the short run:

A. is very similar to the short run monopoly diagram
B. is very similar to the short run perfect competition diagram
C. is very similar to the short run oligopoly diagram
D. is completely different to the diagrams of all the other types of markets
Answer» A. is very similar to the short run monopoly diagram
38.

If the Average Total Cost curve of a firm in monopolistic competition happens to be above the demand curve, it means:

A. the firm will have to sell a lot in order to make a profit
B. the firm will have to sell at a very high price in order to make a profit
C. other firms are performing better in the market than the firm depicted in the diagram
D. that firms in that industry will be incurring losses in the short run
Answer» D. that firms in that industry will be incurring losses in the short run
39.

If firms in monopolistic competition are enjoying positive economic profits, in the long run

A. they will continue enjoying such profits, since new firms will be unable to enter the industry
B. consumers will cease wanting to buy such expensive goods and will switch to cheaper alternatives
C. this will attract new firms into the industry, causing prices to drop and profits to disappear
D. the government will have to step in and regulate the price
Answer» C. this will attract new firms into the industry, causing prices to drop and profits to disappear
40.

Firms in monopolistic competition in long run equilibrium ________ than firms in perfect competition.

A. produce less
B. charge a lower price
C. have bigger profits
D. have lower costs
Answer» A. produce less
41.

In monopolistic competition in long run equilibrium, the price will be equal to:

A. the marginal cost
B. marginal revenue
C. average variable cost
D. average total cost
Answer» D. average total cost
42.

A major critique of advertising is that

A. it provides information to consumers that they would be better off without
B. it manipulates people\s tastes, leading people to make bad choices
C. it promotes excessive competition among firms in the industry
D. it is usually linked to promotions, which undermine the market\s price
Answer» B. it manipulates people\s tastes, leading people to make bad choices
43.

A major argument in favour of advertising is that:

A. it provides information to consumers that allows them to make better choices
B. it helps people reaffirm their tastes and preferences
C. it reduces competition among firms in the industry, leading to lower prices
D. it is usually linked to promotions, which help lower the market\s price
Answer» A. it provides information to consumers that allows them to make better choices
44.

Branding can be good for society because:

A. it allows people to show off the branded goods they use or wear
B. it keeps generic goods from taking over the market
C. it provides useful information to consumers about the quality of branded goods
D. it helps firms enjoy higher prices and profits
Answer» C. it provides useful information to consumers about the quality of branded goods
45.

Which of the following statements is FALSE?

A. a monopoly is an industry with only one seller
B. an oligopoly is an industry with only a few sellers
C. perfect competition is an industry with many sellers
D. monopolistic competition is an industry with only a few sellers
Answer» D. monopolistic competition is an industry with only a few sellers
46.

Monopsony is a market with

A. one buyer
B. one seller
C. many buyers
D. one buyer and one seller
Answer» A. one buyer
47.

A bilateral monopoly is a market structure consisting of

A. one buyer
B. one seller
C. many buyers
D. one buyer and one seller
Answer» D. one buyer and one seller
48.

A bilateral monopoly is a market structure consisting of both a ______and a _____

A. oligopoly and monopoly
B. monopoly and monopsony
C. oligopoly and perfect competition
D. monopoly and perfect competition
Answer» B. monopoly and monopsony
49.

Monopsony is a market with ______ buyers

A. many
B. few
C. one
D. one hundred
Answer» C. one
50.

A ___________occurs in an industry where there is only one producer of a good and only one supplier.

A. bilateral monopoly
B. monopoly
C. monopsony
D. duopoly
Answer» A. bilateral monopoly
51.

Perfect completion means _____ rivalry

A. perfect
B. absence of
C. fierce
D. intense
Answer» B. absence of
52.

_______ is situation in which a single company or group owns all or nearly all of the market for a given type of product or service.

A. monopsony
B. oligopoly
C. perfect competition
D. monopoly
Answer» D. monopoly
53.

_______ is situation in which a particular market is controlled by a small group of firms.

A. monopsony
B. oligopoly
C. perfect competition
D. monopoly
Answer» B. oligopoly
54.

________ is a market in which there are only a few large buyers for a product or service.

A. monopsony
B. oligopoly
C. oligopsony
D. monopoly
Answer» C. oligopsony
55.

________ 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 manipulate prices.

A. industry
B. firm
C. monopoly
D. cartel
Answer» D. cartel
56.

Which of the following statements is true

A. oligopolies sell more output than perfect competition
B. oligopolies charge a higher price than monopolies
C. oligopolies sell more output than monopolies
D. oligopolies charge a lower price than perfect competition
Answer» C. oligopolies sell more output than monopolies
57.

The larger the number of firms in an oligopoly, the ________ the price and the ________ the output of the industry.

A. lower, greater
B. higher, lesser
C. higher, greater
D. lower, lesser
Answer» A. lower, greater
58.

Factors of production are:

A. the coefficients in a production function
B. the characteristics of a market that determine how much is produced
C. the inputs used to produce goods and services
D. the outputs from a production function
Answer» C. the inputs used to produce goods and services
59.

The property of diminishing marginal product applies:

A. only to workers in the short run
B. applies to workers and any other variable inputs in the short run
C. only to workers in the long run
D. applies to workers and any other variable inputs in the long run
Answer» B. applies to workers and any other variable inputs in the short run
60.

All of the following will cause the value of the marginal product of labor to increase, EXCEPT:

A. an increase in the price of the good sold by the firm
B. a new production technology is developed and implemented by the firm
C. an increase in the number of workers employed by the firm
D. an increase in the quantity of other factors of production used by the firm
Answer» C. an increase in the number of workers employed by the firm
61.

If the supply curve for labor is backward bending, and if the wage of a worker increases, she might choose to work:

A. fewer hours per week, since she can earn the same income working fewer hours
B. more hours per week, since she can earn the same income working fewer hours
C. fewer hours per week, since every hour of leisure is cheaper than before
D. more hours per week, since she needs to work more hours to earn the same income
Answer» A. fewer hours per week, since she can earn the same income working fewer hours
62.

If many students choose to study to become accountants, when all of these students eventually graduate, we can expect accountant's wages to ________, and the equilibrium number of accountants will ________

A. rise, increase
B. drop, increase
C. rise, decrease
D. drop, decrease
Answer» B. drop, increase
63.

If there is a permanent increase in the demand for cars, car manufacturers will want to hire ________ workers, which will cause wages in the industry to ________.

A. more, rise
B. more, drop
C. less, rise
D. less, drop
Answer» A. more, rise
64.

As firms gradually acquire ever more technology, machinery and equipment, workers' productivity gradually ________, and workers wages gradually ________.

A. rises, decrease
B. diminishes, decrease
C. diminishes, increase
D. rises, increase
Answer» D. rises, increase
65.

The price paid for any factor of production tends to be equal to:

A. the wage rate
B. the value of the marginal product of that input
C. the price of the product sold by the firm that inputs
D. the price of the product sold by the firm that buys the inputs
Answer» B. the value of the marginal product of that input
66.

In a perfectly competitive market

A. each firm sets its own price
B. there are a few firms selling unique products
C. when one firm ceases production, the market equilibrium price tends to rise
D. none of the above. in a perfectly competitive market, firms sell homogenous products and
Answer» D. none of the above. in a perfectly competitive market, firms sell homogenous products and
67.

The three primary characteristics of a perfectly competitive market are

A. the firms\ products are unique, they set their own price and can freely enter and exit the market
B. the firms\ products are homogenous, the firms are price takers and can freely enter and exit the market
C. the firms\ products are homogenous, the firms are price takers and there are barriers to entry into the market
D. the firms\ products are unique, they are price takers and there are no barriers to entry in the market
Answer» B. the firms\ products are homogenous, the firms are price takers and can freely enter and exit the market
68.

Microeconomic theory assumes that all firms maximize profits because

A. it has been observed that managers always align their goals with investors and seek to maximize short and long run profits
B. profit is likely to dominate almost all decisions for smaller firms
C. if managers deviate from profit maximization decisions for too long shareholders or the board of directors will replace them
D. both (b) and (c)
Answer» D. both (b) and (c)
69.

Profits are maximized when the firm

A. captures the largest market share in its market
B. produces at an output level where marginal revenue exceeds marginal cost
C. produces at the output level where marginal revenue equals marginal cost
D. produces at the output level where total revenue is maximized
Answer» C. produces at the output level where marginal revenue equals marginal cost
70.

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
71.

Profit maximization for a perfectly competitive firm is at the quantity where

A. price equals marginal revenue
B. the difference between price and marginal cost is the greatest
C. price equals marginal cost
D. marginal cost is at a minimum
Answer» C. price equals marginal cost
72.

A firm may decide to shut down in the short run

A. if profit maximization occurs at an output level where price is less than average variable cost
B. if profit maximization occurs at an output level where price is less than average total cost
C. profit maximization occurs at an output level where price is less than average total cost but greater than average variable cost
D. if profit maximization occurs at an output level where price is equal to average total cost and the firm does not foresee changes to the market price in the future
Answer» A. if profit maximization occurs at an output level where price is less than average variable cost
73.

If a perfectly competitive firm finds that the profit maximizing output level occurs where price 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
74.

In the long run, a perfectly competitive firm earning zero economic profits

A. will exit the market in search of more profitable use of its resources
B. is earning a normal rate of return on its investments
C. signifies that the firm is performing poorly and so should exit the market
D. will break even
Answer» B. is earning a normal rate of return on its investments
75.

In the long run, a constant cost industry

A. has an upward sloping supply curve as the quantity supplied increases with increases in demand
B. expands in response to an increase in demand despite rising input costs, and so the long run supply curve is horizontal
C. can expand in response to an increase in demand without input costs changing, and so the long run supply curve is horizontal
D. does not expand in response to an increase in demand and so the long run supply curve is horizontal
Answer» C. can expand in response to an increase in demand without input costs changing, and so the long run supply curve is horizontal
76.

Market power is defined as

A. the ability of a firm to charge any price it wants
B. produce and sell as large a quantity as possible at high prices
C. the ability of a seller or buyer to affect the market price of a good or service
D. sell large a quantity at high prices
Answer» C. the ability of a seller or buyer to affect the market price of a good or service
77.

Marginal revenue for a monopolist is equal to

A. the increased revenue from the sale of an additional unit less the loss of revenue from selling previous units at a lower price
B. the change in revenue resulting from a one unit change in output
C. the change in revenue divided by the change in output
D. all of the above are applicable
Answer» D. all of the above are applicable
78.

For a monopolist, marginal revenue is always less than price because

A. as output increases, the price of all units must fall to sell the additional unit
B. because at lower prices, profit margins fall
C. in order to sell additional quantities, the additional units much be sold at a lower price
D. because monopolist is a price maker
Answer» A. as output increases, the price of all units must fall to sell the additional unit
79.

The profit maximizing output level for a monopolist is

A. the output level where price elasticity of demand is −1 and total revenue is maximized
B. the output level where price elasticity of demand is +1 and total revenue is maximized
C. the output level where marginal revenue equals marginal cost
D. where the difference between price and average total cost is the largest
Answer» C. the output level where marginal revenue equals marginal cost
80.

The supply curve for the monopolist

A. does not exist
B. is represented by the marginal cost curve above the average total cost curve
C. is represented by the marginal cost curve above the average variable cost curve
D. is represented by the marginal cost curve above the average cost curve
Answer» A. does not exist
81.

The Lerner Index is a measure of __________

A. perfect competition
B. monopoly power
C. competition
D. market
Answer» B. monopoly power
82.

For the monopolist, at the profit maximizing level of output

A. price is greater than marginal cost (p > mc)
B. price is equal to marginal cost (p=mc)
C. price may be greater than or equal to marginal cost,
D. price is less than marginal cost (p <mc)
Answer» A. price is greater than marginal cost (p > mc)
83.

A major source of monopoly power in a market is

A. a low market elasticity of demand
B. a high market price elasticity of demand
C. aggressive rivalry between firms in a market
D. the presence of many firms in a market
Answer» A. a low market elasticity of demand
84.

According to economic pricing theory, the basic objective of every pricing strategy

A. is to reduce prices in order to increase consumer surplus and the quantity sold
B. to raise prices in order to reduce consumer surplus
C. sell at a price and quantity where total revenue is maximized
D. to capture consumer surplus and convert it to additional profit for the firm
Answer» D. to capture consumer surplus and convert it to additional profit for the firm
85.

The practice of charging different prices to different consumers for the same goods or services is known as _____

A. product differentiation
B. marketing
C. aggressive selling
D. price discrimination
Answer» D. price discrimination
86.

Which of the following statements about industries that are oligopolies is false

A. firms in these industries may attempt to cooperate
B. firms in these industries are interdependent
C. the fact that there is more than one firm in an oligopoly means that there are no barriers to entry
D. an oligopoly with two firms is called a duopoly
Answer» C. the fact that there is more than one firm in an oligopoly means that there are no barriers to entry
87.

The price rigidity in an oligopolistic market is explained by _______

A. price discrimination
B. product differentiation
C. bundling
D. kinked demand curve
Answer» D. kinked demand curve
88.

Product differentiation is seen in

A. perfect competition
B. monopoly
C. monopolistic competition
D. pure competition
Answer» C. monopolistic competition
89.

Price discrimination is a strategy in

A. monopoly
B. perfect competition
C. monopolistic competition
D. pure competition
Answer» A. monopoly
90.

Suppose a competitive firm produces 100 units of X for a price of Rs.10 a unit. The firm is employing labour and capital such that the marginal physical product of labour and capital is 20 and 5 and the prices paid to labour and capital are Rs. 60 and Rs. 40 respectively. How would you characterize the firm

A. the firm is in long-run equilibrium
B. the firm is earning excess profits
C. the firm should expand production
D. the firm should contract production
Answer» C. the firm should expand production
91.

That the perfectly competitive firm will pick a combination of inputs where the ratio of each input’s marginal product to its price is equal follows from

A. the need to use inputs in fixed proportions
B. the backward bending supply curve of labour
C. cost minimization
D. the attempt to achieve a target rate of return
Answer» C. cost minimization
92.

If an additional worker costs you Rs. 15 per hour, and that person can add 25 units of output to the firm, you should hire that person as long as

A. 25 remains above rs.15
B. 25/rs.15 is greater than zero
C. rs.15/25 is great than zero
D. the value of the marginal product is above rs.15 .........................
Answer» D. the value of the marginal product is above rs.15 .........................
93.

Entry is restricted under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» B. Monopoly
94.

Demand curve is perfectly elastic under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» A. Perfect competition
95.

Demand curve is elastic under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» C. Monopolistic competition
96.

Demand curve is inelastic under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» B. Monopoly
97.

Differentiated but close substitutes exist under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» C. Monopolistic competition
98.

Selling cost is insignificant under:

A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. All of the above
Answer» B. Monopoly
99.

Few firms exist under:

A. Perfect competition
B. Oligopoly
C. Monopolistic competition
D. Both perfect and monopolistic competition
Answer» B. Oligopoly
100.

In which market structure, price and output solution is indeterminate?

A. Oligopoly
B. Monopolistic competition
C. Perfect competition
D. Monopoly
Answer» A. Oligopoly
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