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Test: Non Competitive Markets - 2


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20 Questions MCQ Test Indian Economy for UPSC CSE | Test: Non Competitive Markets - 2

Test: Non Competitive Markets - 2 for Commerce 2022 is part of Indian Economy for UPSC CSE preparation. The Test: Non Competitive Markets - 2 questions and answers have been prepared according to the Commerce exam syllabus.The Test: Non Competitive Markets - 2 MCQs are made for Commerce 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Non Competitive Markets - 2 below.
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Test: Non Competitive Markets - 2 - Question 1

Selling cost is the feature of

Test: Non Competitive Markets - 2 - Question 2

The demand curve of oligopoly is?

Test: Non Competitive Markets - 2 - Question 3

In perfect competition the goods are

Test: Non Competitive Markets - 2 - Question 4

Which of the following is the most competitive market structure?

Test: Non Competitive Markets - 2 - Question 5

In monopolistic competition the goods are

Test: Non Competitive Markets - 2 - Question 6

A monopoly structure must have one seller, has no substitute, and entry into the industry is preventeD.

Test: Non Competitive Markets - 2 - Question 7

The market price of the commodity depends on the amount supplied by the monopoly firm.

Detailed Solution for Test: Non Competitive Markets - 2 - Question 7

‘Mono’ means one and ‘poly’ means seller. Thus, monopoly refers to a market situation in which there is only one seller of a particular product. Here the firm itself is the industry and the firm’s product has no close substitute. The monopolist is not bothered about the reaction of rival firms since it has none. The demand curve of the monopolist is the industry demand curve. (Recall that in pure competition there are two demand curves).

Test: Non Competitive Markets - 2 - Question 8

The market demand curve is the marginal revenue curve for the monopoly firm.

Detailed Solution for Test: Non Competitive Markets - 2 - Question 8

In a monopoly market, the marginal revenue curve and the demand curve are distinct and downward-sloping. Production occurs where marginal cost and marginal revenue intersect.

Test: Non Competitive Markets - 2 - Question 9

The shape of the total revenue curve depends on the shape of the average revenue curve.

Detailed Solution for Test: Non Competitive Markets - 2 - Question 9

Average revenue is the revenue per unit of the commodity sold. It is obtained by dividing the total revenue by the number of units sold. Mathematically AR = TR/Q; where AR = Average revenue, TR = Total revenue and Q = Quantity sold. 
If there is any change in the AR, then TR will also change. Therefore, the shape of the total revenue curve depends on the shape of the average revenue curve.

Test: Non Competitive Markets - 2 - Question 10

In the case of a negatively sloping straight line demand curve, the total revenue curve is

Test: Non Competitive Markets - 2 - Question 11

Average revenue for any quantity level can be measured by the slope of the total revenue curve.

Detailed Solution for Test: Non Competitive Markets - 2 - Question 11

Average revenue for any quantity level can be measured by the slope of the line from the origin to the relevant point on the total revenue curve.
MR = ∆TR/∆Q
∆TR/∆Q indicates the slope of the total revenue curve.
Thus, if the total revenue curve is given to us, we can find out marginal revenue at various levels of output by measuring the slopes at the corresponding points on the total revenue curve.

Test: Non Competitive Markets - 2 - Question 12

Marginal revenue for any quantity level can be measured by the slope of the total revenue curve.

Test: Non Competitive Markets - 2 - Question 13

Tooth paste industry is an example of?

Detailed Solution for Test: Non Competitive Markets - 2 - Question 13

This type of market is combination of monopoly and competitive markets. a monopolistic competitive market is one with freedom of entry and exit, but firms can differentiate their products. 
Toothpaste compete on quality of product as much as price. Product differentiation is a key element of the business. There are relatively low barriers to entry in setting up a new business.

Test: Non Competitive Markets - 2 - Question 14

Cartels exist in

Detailed Solution for Test: Non Competitive Markets - 2 - Question 14

Oligopoly is when a small number of firms collude, either explicitly or tacitly, to restrict output and/or fix prices, in order to achieve above normal market returns. Firms in an oligopoly set prices, whether collectively – in a cartel – or under the leadership of one firm, rather than taking prices from the market.

Test: Non Competitive Markets - 2 - Question 15

Under which market conditions firms make only Normal profit in the long run

Test: Non Competitive Markets - 2 - Question 16

The demand curve of a monopoly firm will be:

Test: Non Competitive Markets - 2 - Question 17

A firm practicing price discrimination will be?

Test: Non Competitive Markets - 2 - Question 18

Price discrimination under monopoly depends on?

Detailed Solution for Test: Non Competitive Markets - 2 - Question 18

The monopolist has control over pricing, demand, and supply decisions, thus, sets prices in a way, so that maximum profit can be earned. The monopolist often charges different prices from different consumers for the same product. This practice of charging different prices for identical product is called price discrimination. And in monopoly it is decided by the change in the demand of the product.

Test: Non Competitive Markets - 2 - Question 19

The AR curve and industry demand curve are same in case of?

Detailed Solution for Test: Non Competitive Markets - 2 - Question 19

In a monopoly market, there is only one product or service of such kind, therefore the demand of the product is not affected by any external force which means the AR will remain same as the Demand.

Test: Non Competitive Markets - 2 - Question 20

The market structure in which the number of sellers is small and there is interdependence in decision making by the firms is known as

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