The necessary condition for equilibrium position of a firm is:

• A) MC=MR
• B) MC>Price
• C) MC>MR
• D) MC=AC

All of the following are characteristics of perfect competition EXCEPT:

• A) Free entry and exit of the firms
• B) Individual firm can influence the price
• C) Marginal revenue curve is horizontal
• D) Demand curve of a firm is horizontal

The monopolistically competitive firms operate with ________ plant capacity.

• A) Minimum
• B) Justified
• C) None of the given options
• D) Excess

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

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

In Economics, long run is a period in which:

• A) Firms cannot enter and exit
• B) All inputs can be changed
• C) No input can be changed
• D) At least one input is fixed

In case of Monopoly:

• A) Marginal revenue is always equal to average revenue.
• B) Marginal revenue is always less than average revenue.
• C) Total revenue curve always slopes upward.
• D) Marginal revenue curve always slopes upward.

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

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

When a competitive firm achieves long run equilibrium then:

• A) P=ATC
• B) All of the given options
• C) P=MC
• D) MR=MC

Suppose a firm produces 15 units of output and incurs Rs.30 in average variable cost and Rs.8 in average fixed cost, average total cost is:

• A) Rs.38
• B) Rs.30
• C) Rs.33
• D) Rs.17

In monopoly, at various output levels, average revenue is:

• A) Less than marginal revenue
• B) Equal to marginal revenue
• C) Average revenue and marginal revenue curves are not parallel
• D) Greater than marginal revenue

In price discrimination, price elasticity of demand in different segments of market should be:

• A) Infinite elastic.
• B) Unit elastic.
• C) Different.
• D) Same.

Which of the following is the market structure in which firms are mutually dependent?

• A) Perfect competition
• B) Monopolistic competition
• C) Oligopoly
• D) Monopoly

A cartel is an organization of oligopolistic firms which is formed through a formal written agreement to cooperate in setting:

• A) Quantity to produce
• B) Price only
• C) Price and output
• D) Relative elasticities

All of the following are key characteristics of oligopoly EXCEPT:

• A) Large number of firms
• B) Pricing Interdependence
• C) Non-price competition
• D) Difficult entry

All of the following are necessary conditions for the success of cartels EXCEPT:

• A) Adherence to agreement
• B) Possibility of Exerting Counter Pressure on the Part of Buyers
• C) All important producers must join
• D) Low price elasticity of demand

Which of the following oligopoly models predicts that oligopoly prices will tend to be very inflexible?

• A) Cost-plus pricing model
• B) Kinked demand model
• C) Collusive oligopoly model
• D) Price leadership model