Deck 4: Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

Question 1

Monopsony refers to

A)single seller
B)a few sellers
C)single buyer
D)a few buyers

Answer 1

single buyer

Question 2

Discriminating monopoly is possible if two markets have

A)differing elasticity of demand
B)differing average cost
C)same elasticity
D)different average cost

Answer 2

differing elasticity of demand

Question 3

Monopolist can fix

A)both price and output
B)neither price and output
C)either price and output
D)none of the above

Answer 3

either price and output

Question 4

A discrimination monopolist charges in a market

A)lower prices if it has lower elasticity
B)higher prices if it has lower elasticity
C)lower prices if it has higher elasticity
D)cannot say

Question 5

A firm practicing price discrimination will be

A)changing qualities of the product
B)buying from the cheapest market
C)buying from firms
D)charging different prices in different markets

Question 6

The best level of output for the monopolist is

A)ac is minimum
B)tc=tr
C)tr and tc are parallel
D)tr is maximum

Question 7

If the monopolist faces identical demand for his commodity in the two separate markets, by practicing third degree price discrimination

A)will increase his tr and total profit
B)can increase his tr and profit
C)cannot increase his tr and profit
D)will charge different prices in different market

Question 8

Under pure monopoly, there will be

A)no distinction between firm and industry
B)one firm no industry
C)no firm one industry
D)very few firms

Question 9

Monopolist will not produce that portion of demand curve where the elasticity of demand

A)equal to unity
B)less than unity
C)greater than zero
D)none of the above

Question 10

Under monopoly, the equilibrium price is

A)equal to mc
B)less than mc
C)more than mc
D)equal to ac

Question 11

The cross elasticity of demand for the monopolist product is

A)very low
B)moderate
C)high
D)very high

Question 12

Which of the following is known as the perfect price discrimination

A)first degree price discrimination
B)second degree price discrimination
C)third degree price discrimination
D)nine of the above

Question 13

A monopolist usually earns

A)economic profit
B)only normal profit
C)losses
D)profit and losses, which are uncertain

Question 14

Price discrimination is possible

A)under any market form
B)only under monopoly
C)only under monopolistic competition
D)only in perfect competition

Question 15

Who introduced various types of price discrimination

A)alfred marshall
B)adam smith
C)a c pigou
D)j b say

Question 16

Oligopoly is a market situation characterized by

A)large number of buyers and sellers
B)a single seller
C)fairly large number of buyers and sellers
D)a few sellers

Question 17

'Indeterminateness of demand curve' is a feature of

A)perfect competition
B)monopoly
C)monopolistic competition
D)oligopoly

Question 18

Selling cost is maximum in the case of

A)monopoly
B)oligopoly
C)perfect competition
D)monopolistic competition

Question 19

The concept of 'Kinked demand curve' is related to

A)monopoly
B)monopolistic competition
C)perfect competition
D)oligopoly

Question 20

The concept of 'Kinked demand curve' was developed by

A)alfred marshal
B)j r hicks
C)p m sweezy
D)a.k sen

Question 21

'Group behavior' is a feature of

A)monopoly
B)oligopoly
C)perfect competition
D)monopolistic competition

Question 22

Advertising can become 'a life and death matter' in

A)perfect competition
B)monopoly
C)monopolistic competition
D)oligopoly

Question 23

Classical oligopoly models are related to

A)collusive oligopoly
B)non-collusive oligopoly
C)price leadership model
D)none of the above

Question 24

Price leadership can be in the form of

A)price leadership by a low cost firm
B)price leadership by a dominant firm
C)a barometric price leadership
D)all of the above

Question 25

'Cartels' are example for

A)collusive oligopoly
B)non-collusive oligopoly
C)monopsony
D)none of the above