Deck 16: Market Structures and Equilibrium

Question 1

When there are only two sellers, the market is called as:

A)Oligopoly
B)Monopsony
C)Duopoly
D)Bilateral monopoly

Answer 1

Duopoly

Question 2

Perfect competition is a market situation under which a commodity is sold at:

A)Uniform price
B)Different price
C)Higher price
D)Lower price

Answer 2

Uniform price

Question 3

The demand curve of a firm under perfect competition is :

A)Inelastic
B)Perfectly inelastic
C)Infinitely elastic
D)Unitary elastic

Answer 3

Infinitely elastic

Question 4

The price of a commodity under the perfect competition is determined by:

A)Buyer
B)Seller
C)Firm
D)Market forces

Question 5

Equilibrium literally means:

A)Balance
B)Imbalance
C)Change
D)None of these

Question 6

The price at which the demand and supply are equal is called:

A)Normal price
B)Support price
C)Equilibrium price
D)Fair price

Question 7

Cost of advertisement and salesmanship is called:

A)Sales cost
B)Selling cost
C)Dual price
D)None of these

Question 8

Price leadership is a feature of:

A)Monopoly
B)Oligopoly
C)Duopoly
D)Monopolistic Competition

Question 9

The market situation characterized by one buyer is:

A)Monopsony
B)Monopoly
C)Bilateral monopoly
D)Oligopsony

Question 10

Under the Perfect competition, products are:

A)Heterogeneous
B)Homogenous
C)Semi-homogeneous
D)All of these

Question 11

The demand curve of Monopoly firm is ----------slopped.

A)Downward
B)Upward
C)Positively
D)None of these

Question 12

The payment given to the factor labour is known as:

A)Rent
B)Wage
C)Interest
D)profit

Question 13

Monopoly is:

A)Presence of competition
B)Absence of competition
C)Both A & B
D)None of these

Question 14

A monopolist is a:

A)Price taker
B)Price maker
C)Policy maker
D)All of these

Question 15

Long run equilibrium price is also called:

A)Normal price
B)Abnormal price
C)Market price
D)Just price

Question 16

Under perfect competition:

A)AR and MR are identical
B)AR is greater than MR
C)MR is lower than AR
D)None of these

Question 17

Firm and industry are the same under:

A)Perfect competition
B)Oligopoly
C)Monopoly
D)Duopoly

Question 18

Kinked demand curve is found under:

A)Monopoly
B)Oligopoly
C)Perfect competition
D)Duopoly

Question 19

The point at which the firm covers its variable cost is called:

A)Point of Inflexion
B)Equilibrium
C)Shut down
D)None of these

Question 20

The equilibrium price in the short period is called:

A)Normal price
B)Abnormal price
C)Market price
D)Bogus price

Question 21

Cartel is one form of:

A)Monopoly
B)Duopoly
C)Collusive oligopoly
D)Non-collusive oligopoly

Question 22

Competition "among the few" is often called as:

A)Duopoly
B)Perfect competition
C)Bilateral monopoly
D)Oligopoly

Question 23

The equilibrium point in game theory is called:

A)Prisoner's dilemma
B)Break-even point
C)Saddle point
D)Shut down point

Question 24

Equilibrium in the Cournot Model of Duopoly is:

A)Unstable
B)Stable
C)Undefinable
D)None of these

Question 25

The book 'Theory of Monopolistic Competition' is written by:

A)J.Robinson
B)J.M. Keynes
C)Adam Smith
D)E. Chamberlin

Question 26

' The Economics of Imperfect Competition' is written by;

A)J.Robinson
B)J.M. Keynes
C)Adam Smith
D)E. Chamberlin

Question 27

The Theory of Glut is the contribution of:

A)Ricardo
B)Malthus
C)J.S. Mill
D)Adam Smith

Question 28

'Production of commodities by means of commodities' is related to:

A)Karl Marx
B)Kaldor
C)Steedman
D)Piero Sraffa