Forms of Markets

1. Market with single buyer and many sellers.

• 1. Monopoly

• 1. Oligopoly

• 1. Monopsony

• 1. Monopolistic Competition

Demand curve of industry under perfect competition

• 1. Upward Sloping

• 1. Downward Sloping

• 1. Vertical to Y axis

• 1. Horiontal to X axis

 In third-degree price discrimination, the firm:

• Charges all consumers the same price

• Bases prices on the number of units a consumer buys

• Charges different prices to groups with different price sensitivities

• Randomly assigns different prices to test customer loyalty

In economics, the "short run" is defined as a period during which:

• Period within one year
  
  

• All inputs are fixed
  

• At least one input is fixed
  

• Output cannot be changed

Barriers to entry in an oligopoly are generally:

• Low
  
  

• Easy to overcome

• Non-existent

•  High

Which key assumption of perfect competition explains why firms earn only normal profit in the long run?

• Products are homogeneous
  
  

• Firms have no control over prices
  

• There is free entry and exit of firms
  

• None of these

The main reason that firms in monopolistic competition can charge different prices for their products?

• They face little to no competition
  

• Products are differentiated
  

• There are large economies of scale
  

• Government regulations limit competition

The Competition Commission of India has become fully functional

• 1. April 01, 2002

• 1. March 01, 2008

• 1. May 20, 2009

• 1. March 01, 1991

1. A perfectly competitive firm should reduce output or shut down in the short run if market price is equal to marginal cost and price is

•  Greater than average total cost.
  

• Less than average total cost.
  

• Greater than average variable cost.
  

• Less than average variable cost.

In an oligopoly market, what does game theory help to analyze?

• The behavior of consumers in a perfectly competitive market
  

• The strategic decisions made by firms in an interdependent market
  

• The market demand and supply equilibrium
  

• The optimal production levels in a monopoly