Comparision between Market Structures

Q.

An exceptional demand curve is one that moves

1. Horizontally
   

2. Downward to the right
   

3. Upward to the right
   

4. Upward the left

Q. Explain the average and marginal revenue curves of a firm under perfect competition.

Q. A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand _________________.

1. decreases
2. is zero
3. remains the same
4. increases

Q. How is the demand curve under monopolistic competition different from demand curve of a firm under perfect competition?

Q. Explain the conditions of perfect competition. Why is the demand curve facing a firm under perfect competition perfectly elastic?

Q. Firm's demand curve under monopolistic competition is more elastic than under monopoly.

1. True
2. False

Q.

1. equally elastic
2. less elastic
3. more elastic
4. infinitely elastic

Q.

Q.
In which market form are average revenue and marginal revenue of a firm always equal?

Q. What is meant by inelastic demand? Compare it with perfectly inelastic demand.

Q. Firm's demand curve shows highest elasticity in a state of monopolistic competition (in which there is a large number of close substitutes) than in a state of monopoly or perfect competition.

1. True
2. False

Q.

Families are an interesting potential market for Burger King because

Q. Highly elastic negatively sloped demand curve is related to ______.

1. monopoly
2. both (a) and (b)
3. monopolistic competition
4. perfect competition

Q. Marginal revenue will be negative if elasticity of demand is ______.

1. equal to zero
2. less than zero
3. greater than one
4. less than one

Q. Firm's demand curve under perfect competition is a horizontal straight line.

1. True
2. False

Q. Demand curve of each firm in monopolistic competition is ____________.

1. Downward sloping
2. Parallel to X axis
3. Corresponds to industry as a whole
4. both a & c

Q. Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be: (choose the correct alternative)

1. Greater than average revenue
2. Equal to average revenue
3. Less than average revenue
4. Rising

Q. In the context of Indifference Curve Analysis, MRS stands for _____ .

1. Marginal Rate of Substitution
2. Marginal Return of Substitution
3. Marginal Rate of Satisfaction
4. Marginal Return of Satisfaction

Q.

In what manner does AR of firm under perfect competition, monopoly firm and in monopolistic competition change as output increases?

Q. Marginal utility is a function of ________.

1. Consumption
2. Demand
3. Supply
4. Cost

Q. Fixed costs are ignored under ______________.

1. full-cost pricing
2. going rate pricing
3. marginal cost pricing
4. target pricing

Q. Price elasticity of demand for individual firm is perfectly elastic. This is feature of _____________.

1. monopoly
2. perfect competition
3. monopolistic competition
4. (B) and (C)