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4

Competitors in monopolistic competition have full control over:

A. The price of their product

B. Product quality

C. The shape of the market demand curve

D. The elasticity of product substitution

Correct Answer :

B. Product quality


Related Questions

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4

The Law of Equi-Marginal Utility refers to:

A. Marginal utility of commodity X

B. Marginal utility of commodity Y

C. Marginal utility per rupee spent on X and Y commodities

D. None of the above

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4

The kinked demand curve comes into being where:

A. Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other

B. Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other

C. Proportional demand curve (PDC) and individual demand curve (IDC) repel each other

D. None of the above

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4

In first degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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4

Identify the author of The Principles of political Economy and Taxation:

A. Alfred Marshal

B. J.S.Mill

C. David Ricardo

D. A.C.Pigou

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4

Market demand curve is:

A. Vertical summation of individual demand curves

B. Upward summation of individual demand curves

C. Downward summation of individual demand curves

D. Horizontal summation of individual demand curves

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4

Who is the founder of classical school of thought?

A. David Ricardo

B. Adam Smith

C. T.R.Malthus

D. J.S.Mill

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4

The partial equilibrium model keeps other things:

A. Variable

B. Constant

C. Increasing

D. Decreasing

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4

If the demand curve is horizontal then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the above

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4

The general markets results from the imposition of price ceilings has been:

A. Higher prices

B. Increased prices

C. Increased consumption

D. Shortage of products

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4

Under perfect competition, a firm will be in equilibrium if:

A. MC = MR

B. MC cuts the MR from below

C. MC rises when it cuts the MR

D. All the above three conditions are fulfilled

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4

Economic laws are:

A. Conditional

B. Moral by nature

C. Predicted

D. Like laws of sports

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4

In monopolistic competition, the firms face:

A. Horizontal demand curve

B. Vertical demand curve

C. Similar demand curve

D. Differential demand curve

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4

Variable costs refer to:

A. Capital cost plus operating costs

B. Capital costs alone

C. Capital costs plus spill-over costs

D. Operating costs alone

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4

The long-run average cost is based on the fact that:

A. None of the factors are variable in the long-run

B. All factors are perfectly divisible in the long-run

C. None of the factors is divisible

D. Management factor is indivisible while all other factors are divisible and can be varied in long-run

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4

In monopolistic competition, the firm compete on the basis of:

A. Price

B. Entry

C. Both a and b

D. None of the above

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4

The total revenue curve for monopolist is the shape of:

A. Circle

B. Rectangle

C. Parabola

D. None of the above

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4

A loss bearing firm will continue to produce in the short run so long as the price at least covers:

A. Average variable cost

B. Average fixed cost

C. Average variable cost + average fixed cost

D. Marginal costs

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4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

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4

Efficient allocation of resources is achieved to a greater extent under:

A. Monopoly

B. Perfect competition

C. Monopolistic competition

D. Oligopoly

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4

Opportunity costs are also known as:

A. Spill-over costs

B. Money costs

C. Alternative costs

D. External costs

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4

Consumers are likely to get a variety of similar goods under:

A. Monopoly

B. Perfect competition

C. Duopoly

D. Monopolistic competition

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4

Who is the author of Problems of Capital Formation in Underdeveloped Countries?

A. R.Nurkse

B. N.Kaldor

C. S.kuznets

D. Alfred Marshal

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4

In an indifference curve diagram, when the price of a product increases, the decline in quantity demanded that results if consumers utility or welfare is kept constant is referred to as the:

A. Utility effect

B. Budget line effect

C. Substitution effect

D. Income effect

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4

Which of the following is not a U shaped curve:

A. Marginal cost curve

B. Average variable cost curve

C. Fixed cost curve

D. Average cost curve

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4

With the expansion of output, the short run average cost curve, beyond a point, starts rising because:

A. Average fixed cost increases sharply

B. More production yields lower per unit price

C. The law of variable proportions applies to short run production

D. Sales expenses become much larger

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4

In a competitive market, price is determined primarily by:

A. Transportation costs

B. The interplay of demand and supply

C. Costs of production

D. The marginal product of labour

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4

The model which gives us information about price and output changes in different periods is:

A. Stable cobweb model

B. Perpetual oscillation

C. Both(a) and(b)

D. None of them

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4

If the commodities X and Y are perfect substitutes then:

A.

B.

C. >

D. None of the above

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4

Indifference curve represents:

A. Only two commodities

B. Only three commodities

C. More than three commodities

D. Any number of commodities

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4

If the price of Pepsi Cola goes down, you would predict:

A. An increase in supply of coca cola

B. A decrease in supply of coca cola

C. An increase in demand for coca cola

D. A decrease in demand for coca cola