MARKETS

Which of these is true about monopoly?

• no supply curve

• operates along inelastic segment of demand curve

• horizontal AR curve

• slope of MR is half of that of AR curve

A price discriminating monopolist will charge

• lower price in the market with inelastic demand

• lower price in the market with elastic demand

• higher price in the market with inelastic demand

• higher price in the market with elastic demand

The ‘sort of ideal’ output for a monopolistically competitive firm is given by

• The output corresponding to minimum LAC

• Long run equilibrium output

• Short run equilibrium output

Which of the following is incorrect?

• Stackelberg leader output > Cournot output

• Reaction curves of both firms in a Cournot model have a similar slope

• When both firms want to act as leaders, there will be a situation of Satckelberg disequilibrium

In the monopolistically competitive model with utility function exhibiting ‘love for variety’

• Brand variety is low when fixed cost is low

• Brand variety is low when fixed cost high

• Brand variety is independent of fixed cost