Micro Economics MCQ (GK Set-1) with Answers

They help to make a market contestable

They may include a fear of sunk costs

They may include a lack of know-how

They may include the well-known brand names of existing firms

A perfect competitor has no influence over the price of its product

A monopolistic competitor may engage in non-price competition

An oligopolist may monitor the prices and products of all the other firms in its market

A monopolist must be a large firm.

The depreciation on the bus

The wage of the job you gave up

The fuel you buy for the bus

The interest you earned on your savings before you used them to buy the bus

Its explicit costs only

Its explicit costs plus depreciation

Its implicit costs only

Its explicit costs and its implicit costs

A five-firm concentration ratio assesses firms’ sizes with reference to the number of employees, and shows the percentage of total employment in an industry accounted for by the five firms with the most employees

The firms in an industry with a high concentration ratio may, nevertheless, find themselves in a highly competitive environment

Economic profits in a contestable market attract new entrants

In deciding whether to produce inputs or buy them, firms take account of transactions costs