Quiz no 4 ECO402
Total Marks: 50
Justification: 40 Marks
Correct Mcq’s: 10Marks Quiz No. 4
Instructions:
§ Choose the one alternative that best compiles the statement.
§ Justification
§ Multiple answers will result in “0” marks.
§ Negative Marking
1. The competitive firm’s short run supply curve is the rising portion of the:
- MC curve above AVC
- MC curve above AC
- AC curve above AVC
- AVC curve above MC
2. Which of the following markets come closest to perfect market?
- Wheat market
- Cigarette market
- Cold drinks market
- Stock market
3. If demand for imported product is elastic:
- Government will use subsidies
- Government will use price support
- Government will use import tariff
- Government will not interfere
4. If at the current level of output the firm’s Marginal revenue is less than its marginal cost, then the firm should:
- Increase output
- Shutdown
- Expand its capital stock
- Decrease output
5. Pure monopoly may be based on:
- Increasing returns to scale
- Control over the supply of raw material
- Patent or government franchise
- All of the above
6. The short run supply curve of the monopolist is:
- The rising portion of the MC curve
- The rising portion of the Mc curve above AVC
- The rising portion of MC curve above AC
- None of the above
7. The best level of output for the monopolist is the output at which:
- MR equals AC
- MR equals MC
- MR exceeds MC
- MR is less than MC
8. The MR of the monopolist is:
- Larger than P
- Equal to P
- Smaller than p
- Any of the above is possible
9. A monopoly firm will shut down its plant in the short run if:
- It is making a loss
- Marginal revenue is less than marginal cost
- Marginal revenue is less than average variable cost at all levels of output
- Average revenue is less than average variable cost at all levels of output
10. with respect to a perfectly competitive industry with identical cost conditions, a monopolist:
- Produces a larger quantity
- Produces a smaller quantity
- Charges the same price
- Charges a lower price
-
Rating:
5/
Solution: Quiz no 4 ECO402