Monopolistic Competition

Q. Explain the following features of perfect competition:
(i) Large number of buyers and sellers.
(ii) Homogeneous products.

Q. What is the 'price line'?

Q. Explain the implications of the following in an oligopoly market :
a) Inter-dependence between firms
b) Non-price competition

Q. Distinguish between perfect oligopoly and imperfect oligopoly. Also explain the "interdependence between the firms" feature of oligopoly.

Q. State three features of perfect competition.

Q. State three characteristics of monopolistic competition. Which of the characteristic separates it from perfect competition and why?

Q. Which of the following is feature of Perfect Competition?

1. Single firm
2. Entry restriction
3. Absence of close substitutes
4. Homogeneous product

Q. Product differentiation is the most important feature of ___________.

1. pure competition
2. oligopoly
3. monopolistic competition
4. monopoly

Q. In perfect competition, since the firm is a price taker; the ________ curve is straight line.

1. marginal cost
2. total cost
3. total revenue
4. marginal revenue

Q. A firm under monopolistic competition cannot influence market price.

1. True
2. False

Q. A firm under perfect competition has no control over price of the product.

1. True
2. False

Q. Which of these is not a condition for perfect competition?

1. Many buyers and sellers.
2. No transaction cost.
3. ISI mark product being sold.
4. Complete market information.

Q. Which of the following is not a condition of perfect competition?

1. Freedom of entry and exit into and out of the market.
2. Informative advertising to ensure that consumers have good information.
3. Perfect mobility of factors.
4. A large number of firms.

Q. As in perfect Competition, the Firms operating in a monopolistically competitive industry can realize only Normal Profits in the long run because.

1. The Firms tend to have diseconomies of scale in the long run.
2. There are virtually no entry or exit barriers.
3. Consumers are more price sensitive in the long ruin thar in the short run.
4. Cartels agreements tend to be more unstable with the increase of time as member Firms try to increase their profits by cheating on the agreement.

Q. As per _____, a consumer with a single commodity attains equilibrium at a point where MU = Price.

1. supply analysis
2. all of the above
3. utility analysis
4. demand analysis

Q. Which of the following is not a characteristic of a monopolistically competitive market?

1. Abnormal profits in the long run
2. Free entry and exit
3. Many sellers
4. Differentiated products

Q. Monopolist is price maker.

1. True
2. False

Q. The market state that satisfy all the essential features of a perfect competitive market except identity of product is known as __________.

1. oligopoly
2. duopoly
3. monopoly
4. monopolistic competition

Q. The demand curve for a perfectly competitive firm __________________.

1. slopes downward as the quantity demanded increases as the firm lowers price
2. is a horizontal, perfectly elastic demand curve at the market price
3. is a straight, downward sloping curve that is price elastic at higher prices and prices and price inelastic as price falls and approaches zero
4. both (B) & (C)

Q. There are a large number of sellers and the demand curve is not elastic in nature. It is _____ type of market.

1. Perfect competition
2. Monopoly
3. Monopolistic competition
4. All of the above

Q. A monopolist can exercise price discrimination.

1. True
2. False

Q. The condition for pure competition is _________________.

1. large number of buyer and seller, free entry and exist
2. homogenous product
3. both (a) and (b)
4. large number of buyer and seller, homogenous product, perfect knowledge about the product

Q. There is a large number of buyers both under monopoly and monopolistic competition.

1. True
2. False

Q. The sale of branded articles is commodity in a situation of

1. Monopolistic competition.
2. Excess capacity.
3. Pure competition.
4. Monopoly.

Q. Which of the following is not a characteristic of a price taker?

1. TR=P x Q
2. AR=Price
3. Negatively - sloped demand curve
4. Marginal Revenue = Price

Q.
If slope of two demand curves are the same, they show the same elasticity of demand.

1. true
2. false

Q. Identify the market forms for the items given below:
i. A single seller
ii. Homogeneous goods
iii. Product differentiation
iv. A single buyer