CSS :: Market and Revenue Curves
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1. |
Which of the following is one of the assumptions of perfect competition. |
A. |
Few buyers and few sellers |
B. |
Many buyers and few sellers |
C. |
Many buyers and many sellers |
D. |
All sellers and buyers are honest |
Answer: Option C
Explanation:
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2. |
A firm under perfect competition is: |
A. |
Price maker |
B. |
Price breaker |
C. |
Price taker |
D. |
Price shaker |
Answer: Option C
Explanation:
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3. |
Which of the following markets comes closet to perfect market. |
A. |
Wheat market |
B. |
Cigarette market |
C. |
Cold drinks market |
D. |
Stock market |
Answer: Option A
Explanation:
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4. |
This kind of market is undesirable: |
A. |
General markets |
B. |
Specialized |
C. |
Local market |
D. |
National market |
Answer: Option C
Explanation:
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5. |
Which is a condition for existence of monopoly: |
A. |
Big size |
B. |
Identical product |
C. |
Absence of government taxes |
D. |
No close substitute |
Answer: Option D
Explanation:
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6. |
In case of monopoly: |
A. |
Marginal revenue curve always slopes upward |
B. |
Total revenue curve always slopes upward |
C. |
Marginal revenue is always equal to average revenue |
D. |
Marginal revenue is always less than average revenue |
Answer: Option D
Explanation:
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7. |
In case of perfect competition in the market: |
A. |
Marginal revenue curve always slopes upward |
B. |
Marginal revenue curve always slopes downward |
C. |
Marginal revenue is always equal to average revenue |
D. |
Marginal revenue is always less than average revenue |
Answer: Option C
Explanation:
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8. |
In the business world: |
A. |
A firm working under perfect competition wants to become a monopoly |
B. |
A firm working under monopoly wants to become a competitive firm |
C. |
Monopoly price is always higher than competitive price |
D. |
Competitive price is always higher than monopoly price |
Answer: Option A
Explanation:
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9. |
Which is not true: |
A. |
Perfect monopoly does not exist in real world |
B. |
Perfect competition does not exist in real world |
C. |
Every monopoly is evil |
D. |
Every firm wants to reduce competition |
Answer: Option C
Explanation:
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10. |
The major difference between perfect competition and monopolistic competition is: |
A. |
Number of firms |
B. |
Differentiated product |
C. |
Rate of profit |
D. |
Free exist and entry |
Answer: Option B
Explanation:
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