Economics Mcqs

A. There is a kink in the marginal cost curve
B. Demand is price inelastic
C. Demand is price elastic
D. non-price competition is likely

A. Firms compete against each other
B. Price wars are common
C. Firms use price to win market share from competitors
D. Firms collude

A. monopolistic competition
B. monopoly
C. perfect competition
D. oligopoly

A. Should produce more units
B. has maximized profits.
C. is in a Nash equilibrium
D. Should produce fewer units
E. should exit the industry.

A. more than the level produced by a monopoly and less than the level produced by a competitive market
B. less than the level produced by a monopoly and more than the level produced by a competitive market
C. less than the level produce by either monopoly or a competitive market
D. more than the level produced by either monopoly or a competitive market

A. output in the market tends to fall because each firm must cut back on production
B. the price in the market moves further from marginal cost
C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
D. The price in the market moves closer to marginal cost

A. has a legitimate purpose of stopping discount retailers from free riding on the services provided by full services retailers?
B. is price fixing and, therefore is prohibited by law
C. is price fixing and therefore, is prohibited by law and enhances the market power of the producer
D. enhances the market power of the producer

A. Rs 85
B. Rs 75
C. Rs 80
D. Rs 60