Micro Economics MCQ (GK Set-1) with Answers

A rise in total consumer plus producer surplus

A rise in producer surplus

A deadweight loss

A fall in consumer surplus

The monopoly would move from making a profit to making a loss

The monopoly would reduce its output

The monopoly would now set its output where its MC curve intersects its AR curve

The monopolist’s price would now equal its marginal cost

The monopoly would move from making a loss to making a profit

The monopoly would increase its output

The monopoly would now set its output where its AC curve intersects its AR curve

The monopoly’s price would be below its marginal cost.

A switch from a marginal cost pricing rule to a two-part tariff

A switch from an average cost pricing rule to rate of return regulation

A switch from rate of return regulation to revenue cap regulation

A switch from revenue cap regulation to price cap regulation.

One function of the UK’s Office of Fair Trading is to try and help consumers

The Competition Commission may consider firms with large shares of a local market as well as firms with large shares of the UK market

The European Commission is allowed to control state aid to firms in the EU

Deregulation means ending regulation