Important Questions for CBSE Class 12 Economics Chapter 6 - Non-Competitive Markets

Important Questions with Answers for Class 12 CBSE Economics Chapter 6 – Non-Competitive Markets which is outlined by expert Economic teachers from the latest version of CBSE (NCERT) books

CBSE Class 12 Micro Economic Chapter-6 Important Questions

QUESTION 1

A monopolistic is a price

  1. Acceptor
  2. Taker
  3. Giver
  4. Maker

Answer: Taker

QUESTION 2

The demand curve of Oligopoly is?

  1. Kinked
  2. Vertical
  3. Horizontal
  4. Rising left to Right

Answer: Kinked

Also Read: What is Demand?

QUESTION 3

The concept of the supply curve is relevant only for?

  1. Oligopoly
  2. Monopoly
  3. Monopolistic Competition
  4. Perfect Competition

Answer: Perfect Competition

QUESTION 4

In perfect competition, when the marginal revenue and marginal cost are equal, profit it?

  1. Zero
  2. Average
  3. Maximum
  4. Negative

Answer: Maximum

QUESTION 5

Which of the below-mentioned option is not mentioned in imperfect competition?

  1. A large number of buyers
  2. Single sellers
  3. Similar/Homogenous product
  4. Price maker

Answer: Similar/Homogenous product

QUESTION 6

In perfect competition, a company earns an abnormal profit when average revenue exceeds the?

  1. Total revenue
  2. Average cost
  3. Total fixed cost
  4. Marginal revenue

Answer: Average cost

QUESTION 7

In the monopolistic market, which curves lie below the demand curve and slopes downward?

  1. Marginal cost
  2. Average cost
  3. Average revenue
  4. Marginal revenue

Answer: Marginal revenue

QUESTION 8

When a negative sloping straight-line demand curve, the total revenue curve is.

  1. A rectangle hyperbola
  2. Convex to the original
  3. An inverted vertical parabola
  4. Concave to the origin

Answer: An inverted vertical parabola

QUESTION 9

Cartels exist in.

  1. Oligopoly
  2. Duopoly
  3. Monopoly
  4. Perfect competition

Answer: Monopoly

QUESTION 10

In monopolistic competition the goods are.

  1. Durable
  2. Differentiated
  3. Heterogeneous
  4. Homogeneous

Answer: Differentiated

QUESTION 11

Which market has characteristics of product differentiation

  1. Monopolistic competition
  2. Oligopoly
  3. Monopoly
  4. Perfect competition

Answer: Monopolistic competition

QUESTION 12

Oligopoly that had identical product is known as.

  1. Pure oligopoly
  2. Collusive oligopoly
  3. Independent oligopoly
  4. None of the above

Answer: Pure oligopoly

QUESTION 13

Explain the effect of a ‘price ceiling’.

Answer: The direct effect of a price ceiling may be termed as black marketing. It is a state, where the product under the government’s authority is illegally sold at higher rates than the price fixed by the government. It might be possible when a buyer is willing to pay in higher rates for the product than not to buy.

QUESTION 14

A Market for a good is in equilibrium. Demand for good ‘increases’. Explain the chain effects of this change.

Answer: The chain effects of this change are

  • When the price is constant, surplus demand emerges.
  • This also increases the competition among the buyers insisting them to raise the price
  • A rise in the price of a product cause fall or decrease in the demand and expansion or rise in supply
  • The cost of the product continues to increase until the market is in balanced at a greater price.

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