Economics MCQ Questions and Solutions with Explanations | Commerce

A. Oligopoly

B. Monopoly

C. Monopolistic Competition

D. Perfect Competition

A. Both A and B

B. $$\frac{{P - mc}}{P}$$

C. $$\frac{1}{E}$$

D. None of the above

A. to dispose of defective goods

B. to save on taxes

C. to take full advantage of differences in inelasticities of demand for his product in different markets/uses

D. to feat another monopolist in the same product

A. change income of consumer

B. change in population

C. change in fashion and customs

D. All of the above

A. The short-run supply curve of the firm is that portion of its marginal cost curve which lies above its average variable cost curve

B. The short-run supply curve of the firm is that portion of its marginal cost curve which lies above its average cost curve

C. The short-run supply curve of the industry cannot be downward sloping

D. The short-run supply curve of the industry can shift upward or downward

A. Cross Elasticity of Demand

B. Substitution Elasticity of Demand

C. Complementary Elasticity of Demand

D. Price Elasticity of Demand

A. Rs. 700 will decrease

B. Rs. 700 will increase

C. Will no change

D. Will increase by Rs. 1400

A. Decrease in input prices causes a leftward shift in the supply curve

B. The demand for a commodity is inversely related to the price of its substitutes

C. The desire for a commodity backed by ability and willingness to pay is demanded

D. When income increases demand for essential goods increases more than proportionately

A. relatively inelastic

B. perfectly inelastic

C. relatively elastic

D. perfectly elastic

A. Both (A) and (R) are correct

B. Both (A) and (R) are not correct

C. (A) is correct but (R) is not correct

D. (A) is not correct but (R) is correct