InterviewSolution
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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Under perfect Competition, each firm is a:A. Price makerB. Neither Price-maker nor Price-takeC.D. None of these |
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Answer» Correct Answer - C N/a |
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| 2. |
Demand curve under Oligopoly isA. Less ElasticB. Perfectly ElasticC. Highly ElasticD. Interminate |
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Answer» Correct Answer - D N/a |
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| 3. |
Toothpaste is a product of which type of market formA. Monopolist CompetitionB. MonopolyC. OligopolyD. Perfect Competition |
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Answer» Correct Answer - A A |
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| 4. |
A firm is a price take under:A. Perfect CompetitionB. OligopolyC. Monopolistic CompetitionD. Monopoly |
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Answer» Correct Answer - A A |
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| 5. |
Under which market form, the demand curve is steeper as compared to monopolistic comA. MonopolyB. OligopolyC. Perfect competitionD. None of these |
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Answer» Correct Answer - A A |
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| 6. |
Which form of market is also known as price maker firm?A. MonopolyB. OligopolyC. Perfect compitionD. Monoplistic competition |
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Answer» Correct Answer - A A. |
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| 7. |
In which market form, marginal revenue is equal to price?A. MonopolyB. OligopolyC. Perfect competitionD. Monopolistic competition |
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Answer» Correct Answer - C C |
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| 8. |
In which market form are goods sold at a uniform price? OR In which market form, can a firm not influence the price of the product? |
| Answer» Perfect Competition | |
| 9. |
Product differentiation is a distinguishing feature for which form of marketA. MonopolyB. OligopolyC. Perfect compitionD. Monoplistic competition |
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Answer» Correct Answer - D D |
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| 10. |
Which of these is not a market structure is Econimics?A. Perfect competitionB. MonopolyC. Monoplistic CompetitionD. Intense Competition |
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Answer» Correct Answer - D N/a |
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| 11. |
Consumer get maxiumum variety of good under:A. Perfectly CompetitionB. Monopolistic CompetitionC. MonopolyD. Pure Competition |
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Answer» Correct Answer - B N/a |
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| 12. |
(i) AR is always equal to marginal revenue. (ii) Demand curve is intermediate. (iii) Selling costs are incured for informative purposes. (iv) Firms is a price taker (v) There are large number of firms selling differentiated product (vi) Firm is price maker (vii) Firm may charge different prices for the same product from different consumers at the same time (vii) There is perfect knowledge among buyers and seller. (ix) There is complete interdependence among diferent firms. (x) This market torm shares features of both perfect competition and monopoly. |
| Answer» Perfectly competition, (ii) Oligopoly, (iii) Monopoly (iv) Perfect competition, (v) Monopolistic competition, (vi) Monopoly, (vi) Monopoly, (viii) Perfect Competition, (ix) Oligopoly, (x) Oligopoly, (x) Monopoly competition. | |
| 13. |
In which of the following market structure, advertising expenses are the least?A. MonopolyB. DuopolyC. Monopolistic CompetitionD. Oligopoly |
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Answer» Correct Answer - A N/a |
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| 14. |
In which of the following types of market structure, a firm can earn abnormal profits in the long run?A. Perfect competitionB. Monoplistic CompetitionC. MonopolyD. None of these |
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Answer» Correct Answer - C N/a |
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| 15. |
Discuss the importance of the following factors in determing the nature of the market you have studied: (a) Number of firms, Selling costs, (c ) Price Discrimination, (d) Interdependence of firms. |
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Answer» (a) When the number of firms is very large, it is a case of perfect competition. When the number of firms is no as large as under perfect competition, the situation is that of monopolistic competition. When there are only a few firms in the market, it is a case of oligopoly. When there is only one firm in the market,it is a case of monopoly (b) Heavy selling cost arise under oligopoly and monopolistic competion. Under monopoly low selling costs are incuried for informative purposes only and there is no selling cost are incurred for information purpose only by and there is no selling cost under perfect competition, (c ) Price discrimination is possible only under monopoly (d) The interdependence of firms is a characteristic which beiangs to oligopoly |
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| 16. |
Which of the following is not a condition of the perfect market?A. Homogenous ProductB. Very large number of sellsC. Perfect knowledge among buyersD. Downward sloping demand curve |
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Answer» Correct Answer - D N/a |
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| 17. |
Why is the demand curve under monopoly less elastic as compamred to the demand curve under monopolistic compitition |
| Answer» Demand curve under monopoly is less elastic as compared to the demand curve under monopolistic competition due to absence of close subsitutes in monopoly | |
| 18. |
In case of perfect competition, AR curve isA. Downward slopingB. Positively slopedC. Horizontal staright line parallel to the X-axisD. Vertical staight line parallel to the Y-axis |
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Answer» Correct Answer - C N/a |
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| 19. |
Under perfect competition, the firms earns normal profit in the long run because of:A. Large number of buyers and sellers,B. Absence of selling costC. Free entry and existD. Homogenous commodity |
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Answer» Correct Answer - C N/a |
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| 20. |
Highly elastic negatively sloped demand curve is related toA. Perfect competitionB. Monopolistic CompetitionC. Both (a) and (b)D. None of these |
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Answer» Correct Answer - B N/a |
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| 21. |
Few large firms collectivley decide the level of output and prices and still retain their individual identity. Identigy the type of market form.A. MonopolyB. OligopolyC. Perfect compitionD. Monoplistic competition |
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Answer» Correct Answer - B B. |
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| 22. |
There si inverse relation between price and demand for the product of a firm under:A. Monopoly Competition onlyB. Monopolistic Competition onlyC. Both under Monopoly& Monopolistic CompetitionD. Perfect Competition |
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Answer» Correct Answer - C N/a |
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| 23. |
In_a firm faces an infinetely elastic demand curve which means that the firm can sell any amount of a good at the prevaling market price.A. Oligopoly marketB. Monopoly marketC. Perfect compitionD. Monopolistic Competition |
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Answer» Correct Answer - C N/a |
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| 24. |
Monopolistic competition consitutes:A. Single firm producing close subsituesB. Many firms producing close substitiutesC. Many firm producing differentiated substitutesD. Few firms producing differentiated substitutes |
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Answer» Correct Answer - C N/a |
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| 25. |
Oligopoly is the market structure in which there are:A. Many sellers and many buyersB. One seller and many buyersC. Few sellers and many buyersD. None of these |
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Answer» Correct Answer - C N/a |
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| 26. |
The market in which the number of sellers is small and there is interdependence in decision making by the firms is known asA. Perfect competitionB. OligopolyC. MonopolyD. Monopolistic Competition |
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Answer» Correct Answer - B N/a |
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| 27. |
"In a hypothetical market of mobile phones, the brand AWAAZ was leading the market share. Its nearest competitor VAARTA suddenly changed its strategy by bringing in a new model of the mobile phone at a relatively lesser price. in response, AWAAZ too slashed its price." Based on the above information, identify the form of market represented and discuss any one feature of the market. |
| Answer» The form of market represented in the question is Oligopoly. Under oligopoly, firms are in a position to influence the prices. However, they try to avoid price competition for the fear of price war. They follow the policy of price rigidity. Price rigidity refers to a situation in which price tends to stay fixed irrespective of changes in demand and supply conditions. Firms use methods like advertising, better services to customers,etc to compete with each other.If a firm tries to reduce the price, the rivals will also react by reducing their prices. However, if it tries to raise the price, other firms might not do so. It will lead to loss of customers for the firm, which intended to raise the price. So, firms prefer non-price competition instead of price competition. | |
| 28. |
The demand curves facing a seller under conditions of pertect competition, monopolistic compettion and monopoly difer in their price elasticities of demand. Draw demand curves of all the three market situations in a single diagram. |
| Answer» Perfect competition has a perfscty elastic demand curve (DD) parallel to the X-axis Monopolistic competition has a highly elastic demand curve `(D_(1),D_(1)). Manopoly has a less elastic demand curve `(D_(2)D_(2))` | |
| 29. |
Railway is an example ofA. Perfect competitionB. Monopolistic CompetitionC. MonopolyD. Oligopoly |
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Answer» Correct Answer - C N/a |
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| 30. |
Freedom of entry and exists is possible in the:A. Short runB. Long runC. Both a and bD. Neither a nor b |
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Answer» Correct Answer - B N/a |
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| 31. |
Which of the following is not an essential condition of "Pure Competition"?A. Large number of buyers and sellersB. Homogenous ProductC. Freedom of entryD. Absence of Transport Cost |
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Answer» Correct Answer - D N/a |
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| 32. |
Free entry and exit is a characterisitic fearture ofA. Perfec CompetitionB. MonopolyC. DuopolyD. Oligopoly |
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Answer» Correct Answer - A N/a |
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| 33. |
In case of perfect competition, price is determined at:A. Equilibrium price of the firmB. Equilibrium price of the industryC. Equilibrium between MR and MCD. None of these |
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Answer» Correct Answer - B N/a |
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| 34. |
Which of these is a characteristic feature of Monopoly?A. Single sellerB. Price makerC. Barriers on entry exist of firmsD. All of these |
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Answer» Correct Answer - D D |
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| 35. |
Demand curve of perfectively competitive market form is a horizontal straight line parallel to X-axis. It happens because:A. Selling costs are zeroB. There is freedom of entry and existC. Firm is a price takerD. None of these |
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Answer» Correct Answer - C C |
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| 36. |
In a perfectly competitive market"A. Firm is a price maker and industry is the price takerB. Firm is a price taker and industry is the price makerC. Both are price takersD. Both are price makers |
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Answer» Correct Answer - B N/a |
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| 37. |
which of het following types of market structure is the exact opposite of perfect competition?A. Monopoly CompetitionB. MonopolyC. DuopolyD. Oligopoly |
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Answer» Correct Answer - B N/a |
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