Q.        Discriminating monopoly implies that the monopolist charges different prices for his commodity: A.           From different groups of consumers            B.            For different uses C.            At different places     D.           Any of the above Answer: Any of the above

Q.       The situation of monopolistic competition is created by: A.           Small number of producers of a commodity           B.            Lack of homogeneity of the product produced by different firms C.            Imperfection of the market for that product           D.           All of the above Answer: All of the above

Q.        Under which of the following forms of market structure does a firm have no control over the price of its product? A.           Monopoly        B.            Monopolistic competition C.            Oligopoly         D.           Perfect competition Answer: Perfect competition

Q.        Which is the other name that is given to the average revenue curve? A.           Profit curve    B.            Demand curve C.            Average cost curve    D.           Indifference curve Answer: Demand curve

Q. In which of the following market structure is the degree of control over the price of its product by a firm very large? Imperfect competition Perfect competition Monopoly In A and B both Answer: Monopoly

Q.       In which form of the market structure in the degree of control over the price of its product by a firm very large? A.           Monopoly        B.            Imperfect competition C.            Oligopoly         D.           Perfect competition Answer: Monopoly

Q. Price discrimination will be profitable only if the elasticity of demand in different markets into which the total market has been divided is: Uniform   Different Less              Zero Answer: Different

Q.       Which is the first-order condition for the profit of a firm to be maximum? AC = MR     MC = MR MR = AR    AC = AR Answer: MC = MR

Q.       What is the shape of the demand curve faced by a firm under perfect competition? A.           Horizontal      B.            Vertical C.            Positively sloped         D.           Negatively sloped Answer: Horizontal

Q. Which of the following is not an essential condition of pure competition? A.           Large number of buyers and sellers              B.            Homogeneous product C.            Freedom of entry       D.           Absence of transport cost Answer: Absence of transport cost