Solved Market Structures (Managerial Economics)

Market Structures MCQs for Competitive Exams

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365 MCQs Page 34

Topic Notes: Market Structures

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Market Structures MCQs in Commerce are useful for candidates who need targeted practice for CSS, PMS, FPSC, PPSC, NTS, entry tests, and other competitive exams in Pakistan. This topic page is designed for quick revision, repeated practice, and exam-focused preparation.

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331

In a monopoly market structure, what is the characteristic relationship between the Average Revenue (AR) and Marginal Revenue (MR) curves?

AR curve lies above the MR curve

AR curve lies below the MR curve

AR curve is parallel to the MR curve

AR curve coincides with the MR curve

Report

332

What is the primary economic outcome of price discrimination in a market?

decrease in output

no change in output

increase in output

None of these

Report

333

Why does a monopolist engage in price discrimination?

to take full advantage of differences in inelasticities of demand for his product in different markets/uses

to save on taxes

to dispose of defective goods

to feat another monopolist in the same product

Report

334

How is the long-run supply curve defined for a firm operating under perfect competition?

Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average variable cost curve

Is equal to that portion of the long-run average total cost curve that is above the relevant short-run average variable cost curve

None of the above

Is equal to that portion of the long-run marginal cost curve that is above the relevant short-run average total cost curve

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335

Under which condition is a monopolist able to charge a higher price to maximize total profits?

When elasticity of demand is highly elastic

When elasticity of demand is less elastic

When elasticity of demand is equal to unit

When elasticity of demand is perfectly elastic

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336

Which of the following is NOT a primary objective of price discrimination by a monopolist?

increase the welfare of masses

reduce the welfare of masses

maximise the sales/profit

share the consumer's surplus

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337

In a collusive oligopoly with a dominant price leader, what level of output is typically produced?

Between that which would prevail under perfect competition, and that which a monopolist would choose in the same industry

That would prevail under perfect competition

Between that which would prevail under perfect competition, and that which a monopolistic competitor would choose in the same industry

Equal to that a monopolist would choose in the same industry

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338

Match the following pricing strategies with their definitions: Trade channel discount, Loss leadership, Pricing non-responsive to demand/cost, and Basing point pricing.

a-1, b-2, c-3, d-4

a-4, b-3, c-2, d-1

a-2, b-3, c-4, d-1

a-3, b-4, c-1, d-2

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339

Why is it impossible for a firm in a perfectly competitive market to sustain supernormal profits or losses in the long run?

Perfect knowledge

Freedom of entry and exit of firms

All of the above

Perfect mobility of factors

Report

340

What is the primary purpose of the kinked demand curve model within an oligopoly market structure?

Long-run average cost curves

Collusion among rival firms

Average variable cost curves

Short-run average cost curves

Report

Market Structures MCQs for Competitive Exams

Market Structures MCQs for Competitive Exams

Topic Notes: Market Structures

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