MCQs on Non-competitive Markets

A market becomes non-competitive only when the agents that are acting in the marketplace can influence the price in a direct or indirect manner. These agents have the power to influence the price because of their numbers. These agents also have access to the relevant information, and they can also foresee the interdependence between their own strategies and those of other agents.

We have listed below a number of multiple-choice questions on Non-competitive Markets to help students get a better understanding of the topic.

1. Which of the following statements is not a feature of the imperfect competition?
   1. Imperfect competition has a large number of sellers
   2. Imperfect competition has a single seller
   3. The products manufactured under monopolistic competition are homogeneous in nature
   4. The products manufactured under monopolistic competition are heterogeneous in nature

Answer: c

2. Which of the following statements is true about a monopolist?
   1. A monopolist is a price taker
   2. A monopolist is a price maker
   3. A monopolist is a price acceptor
   4. A monopolist is a price taker

Answer: b

3. Which of the following statements is true?
   1. In perfect competition, the firm and industry both are one and the same
   2. In monopolistic competition, the firm and industry both are one and the same
   3. In monopoly, the firm and industry both are one and the same
   4. In a duopoly, the firm and industry both are one and the same

Answer: c

4. Which of the following statements is true?
   1. A market with two firms is known as a monopoly
   2. A market with two firms is known as a duopoly
   3. A market with two firms is known as an oligopoly
   4. A market with two firms is known as a perfect competition

Answer: b

5. Which of the following statements is true?
   1. A firm has no control over the price of its product under a monopoly
   2. A firm has no control over the price of its product under perfect competition
   3. A firm has no control over the price of its product under an oligopoly
   4. A firm has no control over the price of its product under monopolistic competition

Answer: b

6. Which of the following statements about the monopoly market structure is true?
   1. Under monopoly, the total revenue is maximized when marginal revenue is less than zero
   2. Under monopoly, the total revenue is maximized when marginal revenue is equal to zero
   3. Under monopoly, the total revenue is maximized when marginal revenue is greater than zero
   4. None of the above

Answer: b

7. Which of the following statements is correct?
   1. Price discrimination is one of the main features of perfect competition
   2. Price discrimination is one of the main features of oligopoly
   3. Price discrimination is one of the main features of monopolistic competition
   4. Price discrimination is one of the main features of monopoly

Answer: d

8. Which of the following statements is accurate?
   1. Oligopoly is a market that has a few large firms
   2. Monopoly is a market that has a few large firms
   3. Duopoly is a market that has a few large firms
   4. Perfect competition is a market that has a few large firms

Answer: a

9. Which of the following statements is correct?
   1. The concept of a supply curve is relevant only in the case of duopoly
   2. The concept of a supply curve is relevant only in the case of perfect competition
   3. The concept of a supply curve is relevant only in the case of oligopoly
   4. The concept of a supply curve is relevant only in the case of monopoly

Answer: b

10. Which of the following characteristics of monopolistic competition is true?
    1. It has a relatively large number of sellers in the market
    2. It involves a product differentiation
    3. The products manufactured under monopolistic competition are homogeneous in nature
    4. It allows ease of entry into the market

Answer: c

Also See:

• What Is the Difference Between Selling and Marketing
• Difference Between Economic Growth and Economic Development
• Difference Between Economies of Scale and Economies of Scope
• Difference Between Opportunity Cost and Economic Cost
• Meaning and Impact of Human Capital on Economic Growth