30 Nov
May 11, 2020 Exam main
Micro Economics

Multi-choice 2

Question

1) If the monopoly profit where to add to costs so that costs equalled revenue,even if the average cost curve exclusive of profit was rising ,the average cost curve obtained from the first operative is______

Answers

Necessarily decreasing at the equilibrium output

Necessarily increasing at the equilibrium output

Necessarily increasing at the equilibrium price

Necessarily decreasing at the equilibrium price

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Question

2) Average revenue curve should be kinked in______

Answers

Duopoly

Monopoly

None-collusive oligopoly 

Collusive oligopoly

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Question

3) The excess of TR over the TC is greatest at a point where a competitive firm will maximum_______

Answers

Availability of raw materials 

Profits

Profits of the output

Production of the output

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Question

4) In the below figure, A, B, and C represents

Answers

SMC ,SAC and STC

LMC, SAC and AR=AC

LMC,LAC and AR=AC

LMC, LAC and AR=MR

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Question

5) . The demand curve of consumers for the firm's product,is indicated by_______

Answers

The average cost curve of a firm

The average cost curve of a an industry

The average revenue curve of an industry 

The average revenue curve of firm

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Question

6) Which one of the following statements is correct in connection with monopolistic competitions?

Answers

Comparatively easy entry

Standardized product

Paucity of firm

D) All of the above.

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Question

7) When the TR and STC curves are parallel, it shows the point where the monopolist reaches the_______

Answers

Best level of profit only

Best level of out put

Best level of rivals price

All of the above

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Question

8)  In the long -run, due to blocked entry pure profit can be made by________

Answers

Pure oligopolist

Pure monopolist

Pure duopolist

None of these

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Question

9) The givenn figure represents 

Answers

Short-run equilibrium under perfect competition in the industry and firm

Long-run equilibrium under imperfect competition in the industry and firm

Long-run equilibrium under perfectly competition in the both industry and firm

Long-run equilibrium under oligopolistic competition in the industry only

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Question

10) At a particular price level,there are no forces tending to move it either up or down means_______

  1. The firm is in equilibrium
  2. The price is in equilibrium
  3. The equilibrium price of the firm
  4. The equilibrium price and quantity of a firm

Answers

1 and 4

1 and 3

4 only

1, 2 and 3 only

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This practice type exam is prepared by UAH