1.

Kinked demand curve theory is related with [ 1Mark]

a) Monopoly b) Perfect Competition c) Monopolistic competition d) Oligopoly

2. Which of the following attract new firms to join an industry? [ 1Marks]

a) Normal Profits
b) Economic Profits
c) Accounting Profits
d) Economic Losses
3. A Monopolist will maximize profit in short run where marginal cost equals [ 1Marks]
a) Total Revenue
b) Average Total cost
c) Marginal Revenue
d) Average variable cost
4. Long run average cost curve is ‘U’ shaped due to [ 1Marks]
a) Law of diminishing marginal return
b) Law of return to scale
c) Law of diminishing marginal utility
d) None of the above

5. Advertising cost and selling cost concepts are more important in [1 Mark]
a) Perfect competition
b) Monopoly
c) Monopolistic competition
d) Oligopoly
e) None of above

6. Under which market structure AR=MR. [1 Mark]

(a) Monopoly
(b) Monopolistic
(c) oligopoly
(d) Perfect competition

7 Which of the Curve acts as Demand Curve in the markets: [1 Mark]

(a) Marginal Revenue Curve
(b) Marginal Cost Curve
(c) Average Revenue Curve
(d) Average Cost Curve

8 Cement industry in India are an example of which market structure: [1Marks]

(a) Perfect Competition
(b) Oligopoly
(c) Monopolistic competition
(d) Monopoly

9 Economic cost is always greater than accounting cost because it includes both explicit cost and [1 Mark]
implicit cost
a) This statement is partially true
b) This statement is false
c) This statement is true
d) None of above
10 When to total production is maximum , marginal production is zero [1 Mark]
 a) This statement is true
b) This statement is partially true
c) This statement is false
d) None of above
11 Homogenous product is an important feature of [1 Mark]
a) Perfect competition
b) Monopoly
c) Monopolistic competition
d) Oligopoly

12 Price discrimination is possible under [1 Marks]

a) Monopolistic competition
b) Perfect competition
c) Monopoly
d) Oligopoly
13 Stage of production in law of variable proportion is [1 Mark]

a) Stage 1
b) Stage 2
c) Stage 3
d) None of above

14 Which is the condition of short run equilibrium under perfect competition [1 Mark]

a) Marginal cost curve should Average Revenue curve from below

b) Marginal revenue curve should cut Marginal cost curve from below
c) Marginal cost curve should cut Marginal Revenue curve from below
d) Marginal revenue equals to Average cost
15 In the case of super normal profit in monopoly [1 Marks]
a) P= AVC
b) P>AVC
c) P<AVC
d) P>AC

16 Which curve is also known as Envelope curve [1 Mark]

a) Long run average cost curve
b) Short run average cost curve
c) Short run marginal cost curve
d) Long run marginal cost curve
17 Ratio between change in total cost and total output is known as [1 Mark]
a) Average cost
b) Marginal cost
c) Variable cost
d) None of above

18 Ratio between change in total revenue and marginal revenue is known as [1 Mark]
a) Average Revenue
b) Marginal Revenue
c) Marginal cost
d) None of above

19 Which is not the related with perfect competition [1 Mark]

a) Homogenous product
b) AR=MR
c) AR and MR is parallel to X axis
d)AR>MR
20 production function is a technical relationship between cost and output [1 Marks]
 a) This statement is true
b) This statement is partially true
c) This statement is false
d) None of above

21 In which times all inputs are variable [1 Mark]

a) The Long run
b) The Short run
c) The Financial year
d) None of the above
22 Choose the wrong pair [1 Mark]
a) Long run average cost curve U Shaped
b) Marginal cost equals zero Total cost maximum
c) Short run All factors are constant
23 Large numbers of sellers and buyers is a feature of [1 Mark]
a) Perfect competition
b) Monopoly
c) Monopolistic competition
d) oligopoly

24 In which conditon demand curve is perfectly elastic [1 Mark]

a) Perfect competition
b) Monopoly
c) Oligopoly
d) Duoploy
25 An oligopoly is market where there are [1 Mark]
a) Many sellers
b) Few sellers
c) Few buyers
d) No sellers
26 Match the following [2Mark]
a) Cartel 1) Perfect competition
b) Group Equilibrium 2) Oligopoly
c) Homogenous product 3)Monopolistic competition
d) Price discrimination 4) Monopoly

1) A2,B3,C4,D1 2) A2,B3,C1,D4 3) A1,B2,C3,D4 4) A2,B1,C3,D4

27 Match the following [1Mark]
a) Long run Phenomena 1) Total Revenue In Monopoly
b) Short run 2) Law of Variable proportions
c) Same production level 3)Return to Scale
d) Elasticity of demand 4) Iso-product curve

1) A3, B2,C1,D4 2) A3,B2,C4,D1 3) A1,B2,C3,D4 4) A2,B3,C4,D1

28 Value of the next best use of a resource is known as [1Mark]
a) Opportunity cost
b) Sunk Cost
c) Real Cost
d) Accounting Cost
29 Common characteristic between monopoly firm and monopolist completive firm is [1 Mark]
a) Downward Sloping Demand Curve
b) Large Number of firms
c) Kinked Demand Curve
d) Barriers to entry

30 Which is not feature of oligopoly [1 Mark]

a) Firm is price taker
b) Kinked demand
c) Group equilibrium
d) Cartel