Test: Non Competitive Markets - 1


10 Questions MCQ Test Economics Class 12 | Test: Non Competitive Markets - 1


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This mock test of Test: Non Competitive Markets - 1 for UPSC helps you for every UPSC entrance exam. This contains 10 Multiple Choice Questions for UPSC Test: Non Competitive Markets - 1 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Non Competitive Markets - 1 quiz give you a good mix of easy questions and tough questions. UPSC students definitely take this Test: Non Competitive Markets - 1 exercise for a better result in the exam. You can find other Test: Non Competitive Markets - 1 extra questions, long questions & short questions for UPSC on EduRev as well by searching above.
QUESTION: 1

This a MCQ (Multiple Choice Question) based practice test of Chapter 6 - Non-Competitive Markets of Economics of Class XII (12) for the quick revision/preparation of School Board examinations

Q  Which of the following is not the feature of an imperfect competition?

Solution:

A homogeneous product is one that cannot be distinguished from competing products from different suppliers. In other words, the product has essentially the same physical characteristics and quality as similar products from other suppliers. One product can easily be substituted for the other.

QUESTION: 2

A monopolist is a price

Solution:

A monopoly firm is a price maker or price setter because it is the sole producer of a product.This is in contrast to a competitive firm which is a price taker with zero market power. Because in the monopoly, there is only one seller for the product, any one who wants to buy the product must buy it from the monopolist.

QUESTION: 3

The firm and the industry are one and the same in:

Solution:

A type of market structure, where the firm has absolute power to produce and sell a product or service having no close substitutes. In simple terms, monopolised market is one where there is a single seller, selling a product with no near substitutes to a large number of buyers. As the firm and industry are one and the same thing in the monopoly market, so it is a single-firm industry. There is zero or negative cross elasticity of demand for a monopoly product. Monopoly can be found in public utility services such as telephone, electricity and so on.

QUESTION: 4

Which of the following is not a characteristic feature of imperfect competition?

Solution:

Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario. As the name suggests, competitive markets that are imperfect in nature.

QUESTION: 5

Market which has two firms is known as

Solution:

Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. The concentration ratio measures the market share of the largest firms. A monopoly is one firm, duopoly is two firms and oligopoly is two or more firms.

QUESTION: 6

Under which of the following forms of market structure a firm has no control over the price of its product?

Solution:

Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.

QUESTION: 7

Oligopoly having identical products is known as

Solution:
QUESTION: 8

Price discrimination can take place only in

Solution:
QUESTION: 9

Which market have characteristic of product differentiation

Solution:

Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical. Firms in monopolistic competition typically try to differentiate their product in order to achieve in order to capture above market returns.

QUESTION: 10

Under monopoly form of market, TR is maximum when

Solution:

Marginal revenue means additional revenue generate/received from the sale of additional unit of output.In imperfect (monopoly) when TR increases MR decreases , when TR become maximum MR reaches to zero.