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Of the following, which one is a characteristic of monopolistic competition?

A. Standardized product

B. Differentiate product

C. Two firms

D. No entry

Correct Answer :

B. Differentiate product


Related Questions

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Duopoly is a market where there are:

A. Two sellers

B. A few sellers

C. Five sellers

D. Many sellers

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The point on which the average cost is minimum in a firm, short run average cost curve will also be the minimum cost point on the firms long-run average cost curve. This is true:

A. Always

B. Never

C. When LAC is falling

D. Only at that level of output when LAC is at its minimum

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4

Under the perfect competition, the transportation cost:

A. Is considered to be negligible and thus ignored

B. Is considered to be vital for the calculation of total cost

C. Is charged along with the price of the commodity

D. None of the above

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The law of variable proportions comes into being when:

A. All factors are variable

B. There is a fixed factor and variable factor

C. All factors are non-variable

D. None of the above

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4

The budget constraint can be written as:

A. X.PX + Y.PY = 1

B. X.PX + Y.PY < 1

C. X.PX + Y.PY > 1

D. X.PX + Y.PY = 0

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The ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

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Each firm in cournot model can:

A. not ignor the activities of the rival

B. ignor the activities of the rival

C. both a and b

D. none of the above

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By increasing the price of its products above those of its competitors, a perfectly competitive seller:

A. Can sell more

B. Reduces its revenues

C. Can sell nothing

D. Increases its revenues

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4

The coefficient of the price elasticity of demand is computed as the absolute value of the percentage change in quantity demanded divided by:

A. The change in price

B. The change in supply

C. The percentage change in supply

D. The percentage change in price

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Equilibrium of a firm represents maximization of profits as well as:

A. Maximization of losses

B. Minimization of losses

C. Minimization of profits

D. None of the above

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If a ten percent increase in price causes a ten percent reduction in quantity demanded, elasticity of demand is:

A. Perfectly elastic

B. Elastic

C. Unitary elastic

D. Inelastic

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For the given production function, technical inefficiency is defined as:

A. Sets of points relating production function that maximizes output given input (labor) i.e. Q = f(L, K)

B. Sets of points relating production function that produces less output than possible for a given set of input (labor) i.e. Q < f(L, K)

C. Use of imported technology

D. None of the above

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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

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4

The fixed cost of a firm:

A. Are fixed even in the long period

B. When expressed as an average, show a continuous decline with increase of output

C. Do not reflect diminishing marginal returns

D. None of the above

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Average cost means:

A. Cost of the average units

B. Cost of the last units of average

C. Cost of the unit of production

D. Total cost marginal cost

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The law of demand is most directly a result of:

A. The law of comparative advantage

B. The law of diminishing returns

C. The principle of substitution

D. Economics of large scale production

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The Hicksian demand curve includes:

A. Substitution effect

B. Income effect

C. Both substitution and income effect

D. None of them

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Economics define technology as:

A. Societys knowledge of production

B. Applied science

C. Knowledge of science and mathematics

D. None of the above

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A vertical supply curve parallel to the price axis implies that the elasticity of supply is:

A. Zero

B. Infinite

C. Equal to one

D. Greater than zero but less than infinite

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In monopolistic competition, because of difference in choices, the firm charges:

A. Different prices

B. Similar prices

C. High prices

D. Low prices

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As the price of diamond is higher, so it has:

A. Higher marginal valuation for consumer

B. Lower marginal cost for producer

C. Higher marginal cost for producer

D. Both (a) and (c)

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In monopolistic competition, the firms follow:

A. Exotic behavior

B. Sympathetic behavior

C. Myopia behavior

D. Regular behavior

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In case of giffin good, price effect is:

A. Positive

B. Negative

C. Neutral

D. Infinite

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In market sharing cartel model, cartel determines the shares of:

A. the individuals

B. industry

C. firms

D. associations

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4

Plumbing and pipe-fitting require many of the same skills. If the wage paid to pipe-fitters increased then the effect on the market for plumbers would probably be:

A. An increase in demand

B. A decrease in demand

C. An increase in supply

D. A decrease in supply

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The cost of one thing in terms of the alternative given up is known as:

A. Production cost

B. Physical cost

C. Real cost

D. Opportunity cost

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Supply and demand changes have their most rapid impact in:

A. Auction market

B. Contract markets

C. Market for commercial office space

D. Natural gas market

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All of the following are capital resources except:

A. Warehouses

B. Buildings

C. Dams

D. Share of stock

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An iso-product (an isoquant) curve slopes:

A. Downward to the left

B. Downward to the right

C. Upward to the right

D. Upward to the left

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The production techniques are technically efficient:

A. Bellow the lower ridge line

B. Above the upper ridge line

C. Between the two ridge lines

D. On the upper ridge line