Marginal revenue of a monopolist is always:

• A) Greater than price
• B) Equal to price
• C) Less than price
• D) Increases with output

Which of the following is the formula to calculate average revenue of a firm?

• A) None of the given options
• B) TR/q
• C) ∆TR/∆Q
• D) P/Q

A firm under perfect competition is considered as:

• A) Price maker
• B) Sole producer
• C) Price breaker
• D) Price taker

The marginal revenue curve of a monopolist is:

• A) Upward sloping
• B) Horizontal
• C) Vertical
• D) Downward sloping

In case of perfect competition, the shape of long-run supply curve of a constant cost industry is always:

• A) Positively sloped
• B) Horizontal
• C) Vertical
• D) Negatively sloped

Which of the following is the formula to calculate total revenue of a firm?

• A) ∆TR/∆Q
• B) TR/q
• C) Price / Quantity
• D) Price x Quantity

A market structure with relatively easy entry and with many firms that sell differentiated products is said to be _________ market:

• A) Perfectly competitive
• B) Monopoly
• C) Monopolistically competitive
• D) Oligopoly

A firm decides to shut down production temporarily when:

• A) Price = AC
• B) AC start rising
• C) Price falls below AVC
• D) MC start rising

The addition to the total revenue brought about by the sale of an additional unit of the product is:

• A) Average revenue
• B) Marginal cost
• C) Marginal revenue
• D) Total revenue

What happens to an existing firm's demand curve in monopolistic competition as new firms enter?

• A) It shifts rightward.
• B) New entrants will not affect an existing firm's demand curve.
• C) It becomes horizontal.
• D) It shifts leftward.

Which of the following is TRUE?

• A) AFC+AVC=ATC
• B) ATC+AVC=AFC
• C) ATC+MC=AFC
• D) ATC+AFC=AVC

In case of monopoly, there is/are:

• A) No barriers to entry
• B) Single seller
• C) Many sellers
• D) Single buyer

Which of the following is NOT a characteristic of monopolistic competition?

• A) Entry is blocked
• B) Relatively Easy Entry
• C) Product Differentiation
• D) Relatively Large number of Sellers

Under perfect competition, marginal revenue and average revenue curves:

• A) Are different
• B) Are parallel
• C) Are the same
• D) Intersect each other

Which of the following is the formula to calculate marginal revenue of a firm?

• A) Price x Quantity
• B) Change in quantity/Change in total revenue
• C) Total revenue/Quantity
• D) Change in total revenue/Change in quantity

Suppose a firm produces 10 units of output. Its average total cost is Rs.12 per unit and average variable cost is Rs.5 per unit. Its average fixed cost per unit will be:

• A) Rs.4
• B) Rs.7
• C) Rs.17
• D) Rs.5

A firm in monopolistic competition does not achieve minimum efficient scale because:

• A) It is in competition with other firms.
• B) It is operating on the downward-sloping part of the average cost curve.
• C) It is not a monopoly.
• D) It produces at the minimum average cost.

Which of the following assumptions is NOT true in case of monopoly?

• A) There is one main seller.
• B) There is freedom of entry and exit into the industry in the long run.
• C) The firm is a price maker.
• D) Products are unique.

Which of the following is one of the assumptions of perfect competition?

• A) Many buyers and many sellers
• B) Many buyers and few sellers
• C) Few buyers and few sellers
• D) All sellers and buyers are honest

Which of the following curves is not U-shaped?

• A) Average fixed cost (AFC)
• B) Average cost (AC)
• C) Average variable cost (AVC)
• D) Marginal cost (MC)