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Micro Economics-Online Practice Exam 3

# Question

1) Marginal cost is equal to marginal revenue,average cost is equal to average revence,avrage and average cost is equal to marginal cost that is condition of______

1. 1.Long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. Long period equilibrium
4. Long period equilibrium for a firm under perfect competitions
5. Short period equilibrium for a firm under perfect competitions

1 and 4 only

1, 2 and 3

3 and 4

4 only

# Question

2) Which of the following statements is correct?

1. One way the government can induce a monopolist to expand his output is by imposing a price celling that make the monopolist lower his price
2. MS=MR=AC=AR shows the equilibrium position of the competitive firm
3. One way the government can induce a monopolist to expand his output is by imposing a floor that make the monopolist raise his price
4. One way the government can induce a monopolist to expand his output is by imposing a specific tax on the monopolist out put

1, 2, 3 and 4

1 and 2 only

1 only

2 only

# Question

3) In the case of monopolistic competition

The Long-run supply curve can be defined

The Long-run supply curve can’t be defined

The short-run supply curve can’t be defined

The short-run supply curve can be defined

# Question

4) . MC=MR and MR=AR means_______

The equilibrium position of a firm in the long period

The equilibrium point of a firm under imperfect competition in the short period

The equilibrium point of a firm under perfect competition

A short period equilibrium of a firm under perfect competition

# Question

5) Which off the following statements is not correct?

The short-run, the monopolist make a profit

The impositions of maximum price at the point where the monopolist’s SMC curve intersects his D curve that causes monopolist to make profit

Under price discrimination, demand elasticities are different in difference markets

None of these

# Question

6) For a unitary elasticity of the demand curve,the amount spent by a consumer on a good_______

Remains constant when price change

Increase when price changes

Decrease when price increase

Decrease when price decrease

# Question

7) “The more nearly perfect a market is,the stronger is the tendency for the same price to be paid for the same thing at the same time in all parts of the market” is the definition of perfect competition by_______

Prof.Benham

J.S Mill

Jevons

Prof.Marshall

# Question

8) The social costs are the sum of the private costs and_____

The net of economic damages inflicted on other

The imputed value of the inputs owned by the firm

Sacrifices made by the owners of factors of production

Payments charge made by the entrepreneur

# Question

9) The marginal curve is above the average product curve when the average production is ___

Increasing

Decreasing

Constant

None the these

# Question

10)  When the out put produced is maximum for the given level of inputs the firms achieve_____

Maximum profits

Technical efficiency

Economic efficiency

None of these

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This practice type exam is prepared by myeconomics.info