(A) It has ability to choose among price and output combination
(B) It can discriminate price
(C) It leave the consumer with no consumer surplus
(D) it acts as a market leader
Tag: Economics Mcqs With Answers
In the short run an oligopolistic firm will?
(A) Make profits
(B) Incur losses
(C) Just break even
(D) Any of these three are possible
In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to?
(A) Price discrimination
(B) Cost effectiveness
(C) Banned entry of new firms
(D) Sales promotion
In short run a monopolistic competition firm will be in equilibrium where?
(A) MR = curve intersect SMC curve from above
(B) MR curve intersect SMC curve from below
(C) MC = AR
(D) MR curve intersect SMC from below and P is equal to or more than AVC
When the Demand curve of a pure monopoly firm is elastic, MR will be?
(A) Negative
(B) Positive
(C) Zero
(D) Any of these
The ideal level of operation for a pure monopoly firm is the level where?
(A) TR and STC curve are parallel to each other
(B) TR = TC
(C) TR = Total variable cost;
(D) TR is less than STC
In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes?
(A) Profits and new firms join the market
(B) Profit and bar entry to new firms;
(C) Makes losses and exit the market
(D) Quick profit and disappears
__ may start a price war in order to grab a larger share of market?
(A) Oligopoly
(B) Duopolies
(C) Monopolist
(D) Monopolistic competition