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WorksheetsMix Economics chapter 4
Total questions: 51
Worksheet time: 26mins
Marginal cost curve cuts ______ at their minimum point
average Variable cost
Average cost curve
Average fixed cost curve
Both a & b
Selling costs in perfect competition are
Significant
Zero
Insignificant
more than other market forms
A farmer incurs _______ expenses on selling the goods (i.e. getting the customers like advertisement costs)
Significant
zero
Insignificant
more than other market forms
In which market form demand curve is not known for sure
Perfect competition
Oligopoly
Monopolistic
monopoly
In the monopoly type of market new firms can enter the market
In short run
In the long run
neither in the short run nor in the long run
At all times
Which of the following industry is an example of oligopoly market
Agri sector
Ready made garments
Jewellery market
Telecommunications
Which of the following market is closely represented by perfect competition
Stock market
Airline industry
Telecom industry
Motor vehicles industry
A firm would exit the industry if
It is making loss in the long run
If it making loss in the short run
If it is earning just normal profit in the long run
All of above
_______ is defined as competition among few
Monopoly
Oligopoly
Perfect competition
None
Which of the following is not the objective of collusion among oligopolist
Avoiding completion
raising prices
Earning super normal profit
Keep market prices affordable for consumer
Given that the total cost at zero output is Rs.100, what will be the total fixed cost of the firm at zero output
Zero
100
10
None
When a transaction is such that the price is fixed at present but the delivery of goods is to be made at some future date, the market is known as
Spot market
Forward market
Regulated market
free market
When a transaction is such that the price is fixed at present and the delivery of goods is to be made at immediately or within short period of time then the maket is known as
Spot market
Forward market
Regulated market
free market
In perfect competition price are determined by
Individual seller
Market demand and market supply
Individual buyer
Interaction of individual buyer and individual seller
collusion usually happen when there are
Large number of sellers
Few sellers
Individual seller like monopoly
in all market forms
When an oligopoly market is dominated by one large firm it is known as
Partial oligopoly
Closed oligopoly
imperfect oligopoly
None
Price rigidity is the feature of
Monopoly
Oligopoly
Monopolistic competition
perfect competition
Airlines companies charge different fares depending when you book the flight, this is an example of
Price discrimination
Price rigidity
Price flexibility
Pricing policy
Benefits available when an industry expands
External economies
Internal economies
External profits
Internal profit
The shape of Total revenue curve in monopoly and monopolistic competition is
U shaped
Inverted U shaped
L shaped
Negatively sloped
The firm and industry are same in
oligopoly
Monopoly
duopoly
Monopsony
Under perfect competition, the supply curve is derived from
Marginal cost curve
Marginal product curve
Total cost curve
Market demand curve
increase in demand and decrease in supply Simultaneously should cause
Increase in equilibrium price
No change in equilibrium price
Decrease in equilibrium price
None
If general income level increases in the country, what will the effect on this graph which represents demand for electricity in India,
Demand curve would shift to left
Supply curve would shift to right
Demand curve would shift to right
Supply curve would shift to left
If there is bad whether conditions this year which has adversely affected crop conditions in the economy, what will be its effect on this graph which represents demand and supply of vegetables and fruits in India.
Supply curve would shift to right
Demand curve would shift to left
Demand curve would shift to right
Supply curve would shift to left
A market form in which oligopolist come together to avoid competition among themselves
Open oligopoly
Collusive oligopoly
Competitive oligopoly
Partial oligopoly
In which of the following type of oligopoly market new firms cannot enter at all
Collusive
Competitive
Open
Closed
What does the line drawn from point ‘a’ to point ‘b’ in this image explains
Marginal revenue can go negative but not average revenue
Marginal revenue is zero at the midpoint of demand curve where price elasticity is one
Marginal revenue curve and average revenue curve both originate at the same point
Marginal revenue is less than average revenue always
Find value of X and also find price elasticity of demand in this case
MR is Rs.5 and price elasticity is positive
MR is Rs. 3 and price elasticity is greater than one
MR is Rs. - 3 and price elasticity is less than one
MR is Rs. - 3 and price elasticity can be determined
In which of the following market form, productive resources like plant and machinery, equipment’s etc are utilised fully
Monopoly
Monopolistic market
Perfect competition
None
Organisation of petroleum exporting countries (OPEC) is an example of
Open oligopoly
Collusive oligopoly
Competitive oligopoly
Partial oligopoly
In this curve a firm is producing at
MC = MR
AC = AR
AC = MC
There are 5,000+ farmers in Aurangabad district producing and selling Keshar Mango, while buying the mango, a buyer
Has set preferences that he shall buy from a particular farmer
Has no set preference as to from which farmer he is buying
Always buy from that farmer with whom he is associated with
An oligopoly market in which products are homogenous is known as
Perfect oligopoly
Partial oligopoly
Impartial oligopoly
Imperfect oligopoly
In Pune there are only two English newspapers namely times of India and Indian express, this type of market is known as
Duopoly
Monopsony
Oligopsony
Bilateral monopoly
Kinked demand curve as appearing in this image explains the theory that
Demand for oligopoly market is inelastic
Prices in oligopoly market remains sticky for long time
in oligopoly market a firm earns supernormal profits
None of above
In perfect competition an individual seller ________ who are looking for his product only
Has customers
Has no customers
In monopoly market individual seller has control over
market price
market supply
Both a & b
either a or b
In perfect competition prices are determined after taking into account
industry demand and industry supply
Demand and supply of individual seller
Both a & b
None
industry demand curve of a perfectly competitive market is __________ whereas individual suppliers demand curve is ________
Negatively sloped ; negatively sloped
Horizontal straight line ; negatively sloped
Negatively sloped ; horizontal straight line
None
A firm in perfect competition derives its demand curve from
Market demand curve
It’s individual price demand relationship
Optimum point refers to
AR = AC
MR = MC
MC = AC
None
Optimum point refers to
Where marginal cost is lowest
Where total profit is maximised
Where average cost is minimised
Where marginal profit is maximised
Equilibrium point refers to
MR = MC
AR = AC
MR = AR
None
A consumers equilibrium refers to a point where
A consumer is making huge consumers surplus
A consumer is able to save a lot
It is able to maximise its satisfaction
none of above
A producers equilibrium refers to a point where
It is able to make huge profit
It is able to earn normal profits
It is able to maximise its profits
none of above
In oligopoly market a firm makes ________ in the long run
Normal profits
Super normal profits
Losses
There are different theories suggesting different possibilities
in the long run there is a possibility that a firm would make (except in case of monopoly)
Normal profit
Super normal profit
Incur losses
all of above
in the short run there is a possibility that a firm would make
Normal profit
Super normal profit
Incur losses
all of above
In _______ market a firm cannot make super normal profits in the long run due to free entry and exit
Perfect commotion
Monopoly
Monopolistic market
Both a & c
In _______ market a firm may make super normal profits in the long run due to entry barriers
Perfect commotion
Monopoly
Monopolistic market
