(A) Other firms will also reduce their price
(B) Other firms will compete on a non-price basis
(C) Other firms will raise their price
(D) All of the given options
Category: Economics Mcqs
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The market structure in which each firm is independent in decisions is known as:
(A) Monopolistic competition
(B) Oligopoly
(C) Perfect competition
(D) Monopoly
A feature of oligopoly that makes it similar to monopoly is the:
(A) Inability to influence the price
(B) Downward-sloping demand curve
(C) Freedom of entry into the industry
(D) Horizontal marginal revenue curve
Monopolistic competition is a market structure characterized by:
(A) A single buyer and several sellers
(B) A product with no close substitutes
(C) Barriers to entry and exit
(D) Differentiated products
A feature of monopolistic competition that makes it similar to monopoly is the:
(A) Inability to influence the price
(B) Downward sloping demand curve
(C) Ease of entry into the industry
(D) Horizontal marginal revenue curve
Which of the following is true for both perfect and monopolistic competition?
(A) Firms produce a differentiated product
(B) Firms face a downward sloping demand curve
(C) Firms produce a homogeneous product
(D) There is freedom of entry and exit in the long run
You go to the market to purchase mangoes. Suppose 1 KG of mangoes = Rs. 45. If you purchase 1 KG of mangoes, seller will not discount the rate. But if you purchase mangoes in bulk amount then he will sell you at lower price. This is an example of:
(A) First-degree price discrimination
(B) Second-degree price discrimination
(C) Third-degree price discrimination
(D) Monopolistic competition
Food chains are operating in Pakistan like Mc Donald, KFC and Pizza Hut etc. These food chains sell their products in different countries at different prices. This is an example of:
(A) First-degree price discrimination
(B) Second-degree price discrimination
(C) Third-degree price discrimination
(D) Monopolistic competition