laboursonline – MCQs, Mock Tests | Economics Economics Market and Revenue Curves

Which of the following is one of the assumptions of perfect competition.

1. Few buyers and few sellers
2. Many buyers and few sellers
3. Many buyers and many sellers
4. All sellers and buyers are honest

✅ Correct Answer: 3

A firm under perfect competition is:

1. Price maker
2. Price breaker
3. Price taker
4. Price shaker

✅ Correct Answer: 3

Which of the following markets comes closet to perfect market.

1. Wheat market
2. Cigarette market
3. Cold drinks market
4. Stock market

✅ Correct Answer: 1

This kind of market is undesirable:

1. General markets
2. Specialized
3. Local market
4. National market

✅ Correct Answer: 3

Which is a condition for existence of monopoly:

1. Big size
2. Identical product
3. Absence of government taxes
4. No close substitute

✅ Correct Answer: 4

In case of monopoly:

1. Marginal revenue curve always slopes upward
2. Total revenue curve always slopes upward
3. Marginal revenue is always equal to average revenue
4. Marginal revenue is always less than average revenue

✅ Correct Answer: 4

In case of perfect competition in the market:

1. Marginal revenue curve always slopes upward
2. Marginal revenue curve always slopes downward
3. Marginal revenue is always equal to average revenue
4. Marginal revenue is always less than average revenue

✅ Correct Answer: 3

In the business world:

1. A firm working under perfect competition wants to become a monopoly
2. A firm working under monopoly wants to become a competitive firm
3. Monopoly price is always higher than competitive price
4. Competitive price is always higher than monopoly price

✅ Correct Answer: 1

Which is not true:

1. Perfect monopoly does not exist in real world
2. Perfect competition does not exist in real world
3. Every monopoly is evil
4. Every firm wants to reduce competition

✅ Correct Answer: 3

The major difference between perfect competition and monopolistic competition is:

1. Number of firms
2. Differentiated product
3. Rate of profit
4. Free exist and entry

✅ Correct Answer: 2

Marginal revenue is always less than price at all levels of output in:

1. Perfect competition
2. Monopoly
3. Both (a) & (b)
4. None of the above

✅ Correct Answer: 2

Which of the following is not a characteristic of perfect competition?

1. Free entry and exit of the firms
2. the demand curve of firm is horizontal
3. The marginal revenue curve is horizontal
4. An individual firm can influence the price

✅ Correct Answer: 4

When marginal revenue is zero, total revenue:

1. Maximum
2. Minimum
3. Zero
4. Decreasing

✅ Correct Answer: 1

Marginal revenue is always less than price at all levels of output in:

1. Perfect competition
2. Monopoly
3. Both (a) & (b)
4. None of the above

✅ Correct Answer: 2

Which of the following is not a characteristic of perfect competition?

1. Free entry and exit of the firms
2. Demand curve of a firm is horizontal
3. The marginal revenue curve is horizontal
4. An individual firm can influence the price

✅ Correct Answer: 4