Economics MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16

51.
A profit maximising monopolist in two separate markets will

A. always charge a higher price in less selling market

B. always charge higher price in more selling market

C. charge same price in both markets

D. adjust his sales in the two markets, so that his MR in each market just equals his marginal cost

Answer & Solution Discuss in Board Save for Later

52.
Consider the following statements.
1. Monopolistic competition is characterised by full control over price.
2. In monopoly, the product may or may not be homogeneous.
3. Perfect mobility of the factors is the characteristic of oligoploy.
Which of the statement(s) given above is/are correct?

A. Only 1

B. Only 2

C. Only 3

D. None of the above

Answer & Solution Discuss in Board Save for Later

53.
Under perfect competition (when input prices are fixed and there are no external economies or diseconomies), the industry supply curve is derived by

A. vertically adding the average cost curves

B. horizontally adding the average cost curves

C. vertically adding the marginal cost curves

D. horizontally adding the marginal cost curves

Answer & Solution Discuss in Board Save for Later

54.
In which one of the following market situations, are the firms mutually interdependent in pricing-output decisions?

A. Perfect competition

B. Monopolistic competition

C. Monopsony

D. Oligopoly

Answer & Solution Discuss in Board Save for Later

55.
According to marginal productivity theory, the price of a factor is determined by?

A. Selling price

B. Cost

C. Marginal productivity

D. Cost pricing

Answer & Solution Discuss in Board Save for Later

56.
Consumer is said to be in equilibrium, maximising his total utility, when

A. the marginal utilities of the two goods consumed are equal

B. the proportions of the marginal utilities and respective prices are equal

C. the consumer gets full satisfaction from the consumption

D. the consumer feels satisfied with his expenditure on the various goods

Answer & Solution Discuss in Board Save for Later

57.
If demand increases in a market, this will usually lead to

A. a higher equilibrium price and output

B. a lower equilibrium price and higher output

C. a lower equilibrium price and output

D. a higher equilibrium price and lower output

Answer & Solution Discuss in Board Save for Later

58.
The difference between total cost and total fixed cost represents

A. Total opportunity cost

B. Average cost

C. Total variable cost

D. General cost

Answer & Solution Discuss in Board Save for Later

59.
Supplementary costs in production are incurred to-

A. make the demand curve less elastic

B. bring down the per unit cost of production

C. provide after-sales service

D. ensure increasing returns

Answer & Solution Discuss in Board Save for Later

60.
The demand curve of a firm in perfect competition is

A. downward sloping

B. a rectangular hyperbola

C. parallel to the x-axis

D. parallel to the y-axis

Answer & Solution Discuss in Board Save for Later

1 2 3 4 5 6 7 8 9 10

Economics MCQ Questions and Solutions with Explanations | Commerce

51. A profit maximising monopolist in two separate markets will

Answer & Solution

52. Consider the following statements. 1. Monopolistic competition is characterised by full control over price. 2. In monopoly, the product may or may not be homogeneous. 3. Perfect mobility of the factors is the characteristic of oligoploy. Which of the statement(s) given above is/are correct?

Answer & Solution

53. Under perfect competition (when input prices are fixed and there are no external economies or diseconomies), the industry supply curve is derived by

Answer & Solution

54. In which one of the following market situations, are the firms mutually interdependent in pricing-output decisions?

Answer & Solution

55. According to marginal productivity theory, the price of a factor is determined by?

Answer & Solution

56. Consumer is said to be in equilibrium, maximising his total utility, when

Answer & Solution

57. If demand increases in a market, this will usually lead to

Answer & Solution

58. The difference between total cost and total fixed cost represents

Answer & Solution

59. Supplementary costs in production are incurred to-

Answer & Solution

60. The demand curve of a firm in perfect competition is

Answer & Solution

Read More Section(Economics)

51.
A profit maximising monopolist in two separate markets will

52.
Consider the following statements.
1. Monopolistic competition is characterised by full control over price.
2. In monopoly, the product may or may not be homogeneous.
3. Perfect mobility of the factors is the characteristic of oligoploy.
Which of the statement(s) given above is/are correct?

53.
Under perfect competition (when input prices are fixed and there are no external economies or diseconomies), the industry supply curve is derived by

54.
In which one of the following market situations, are the firms mutually interdependent in pricing-output decisions?

55.
According to marginal productivity theory, the price of a factor is determined by?

56.
Consumer is said to be in equilibrium, maximising his total utility, when

57.
If demand increases in a market, this will usually lead to

58.
The difference between total cost and total fixed cost represents

59.
Supplementary costs in production are incurred to-

60.
The demand curve of a firm in perfect competition is