Micro Economics MCQ (GK Set-1) with Answers

They include monopolistic competitors and monopolists

They can always raise their prices and still retain some customers

They may set different prices in the short run and in the long run

We do not analyse them using diagrams with supply and demand curves

The demand and average revenue curves only

The demand and marginal revenue curves only

The average revenue and marginal revenue curves only

The demand, average revenue and marginal revenue curves

The firm’s SMC and MR curves intersect at an output of 100, and the point on its demand curve at this output is at Rs.10

The firm’s SMC and MR curves intersect at an output of 100, and the point on its MR curve at this output is at Rs.10

The firm’s SMC and AR curves intersect at an output of 100, and the point on its MR curve at this output is at Rs.10

The firm’s SMC and AR curves intersect at an output of 100, and the point on its AR curve at this output is at Rs.10

If AR at this output is below SAC

If AR at this output is below AVC

If MR at this output is below SAC

If MR at this output is below AVC

This firm might respond to a fall in demand by reducing its output and reducing its price

This firm might respond to a fall in demand by reducing its output and increasing its price.

This firm would respond to a fall in the price of a fixed input by increasing its output and reducing its price

This firm would respond to a fall in the price of a variable input by increasing its output and reducing its price