Microeconomics Quiz

Marginal revenue is equal to price for which one of the following types of market structure?

• Perfect competition

• Monopolistic competition

• Monopoly

• Oligopoly

Which of the following industries is most likely to be monopolistically competitive?

• The car repair industry

• The electrical generating industry

• The automobile industry

• None of the above

Monopoly is a single seller. True or false?

The demand curve faced by a monopolistically competitive firm is

• Elastic

• Unit elastic

• Perfectly elastic

• Inelastic

Which of the following types of firms is likely to be a monopolistic competitor?

• An automobile manufacturer

• A restaurant

• A local telephone company

When MC is greater than MR, the seller will

• Elastic

• Inelastic

• Both a and b

• None of these

Under imperfect competition, revenue curves slope

• Downwards

• Horizontal

• Vertical

Under perfect competition, long run equilibrium of a firm is achieved when

• MC=MR

• AC=MC=MR

• P=AC=MC=MR

AR curve under monopoly is

• Horizontal straight line

• Vertical straight line

• U shaped curve

• Downward sloping

Which market has a kinked demand curve?

• Monopoly

• Duopoly

• Oligopoly

• None