Micro Economics (SEM 1) 23.10.24

What is a characteristic of a perfectly competitive market?

• A single seller dominates the market

• Homogeneous products are sold

• High barriers to entry

• Price discrimination is common

In a monopoly market, what is the primary feature?

• One seller with no close substitutes

• Many sellers with similar products

• Free entry and exit

• Perfect knowledge of market conditions

Under perfect competition, firms are?

• price searchers

• price makers

• price discriminator

• price takers

Which of the following is a feature of monopolistic competition?

• High barriers to entry

• No advertising

• Product differentiation

• Single seller

When at equilibrium point where MC = MR & MC cuts MR from below and also AR = MR.

This is the situation of?

• normal profit

• loss

• shut down point

• super normal profits

Under perfect competition, in long run, there will be no____

• cost

• production

• normal profits

• supernormal profits

What is a key characteristic of oligopoly?

• Many firms with identical products

• No advertising

• Perfect knowledge of market conditions

• Interdependence among firms

The demand curve in perfect competition is?

• horizontal

• upward sloping

• downward sloping

• vertical

Price discrimination is possible only under:

• monopsony

• monopoly

• duopoly

• oligopoly

What is the primary goal of a monopolist?

• To maximize output

• To minimize costs

• To ensure market stability

• To maximize profits