Description : In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes (a) Profits and new firms join the market ; (b) Profit and bar entry to new firms; (c) Makes losses and exit the market ; (d) Quick profit and disappears
Last Answer : (a) Profits and new firms join the market ;
Description : The market state that satisfy all the essential features of a perfect competitive market except identity of product is known as (a) Oligopoly ; (b) Duopoly ; (c) Monopoly ; (d) Monopolistic competition
Last Answer : (d) Monopolistic competition
Description : Which of the following is/are the characteristic of a monopolistically competitive market (a) No restriction on exit and entry ; (b) Many sellers ; (c) Product differentiation ; (d) All the three
Last Answer : ; (d) All the three
Description : In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC
Last Answer : ; (d) MR curve intersect SMC from below and P is equal to or more than AVC
Description : …………… has excess production capacity in the long run (a) Perfect competition market ; (b) Monopolistic competition market ; (c) Oligopolistic market (d) None
Last Answer : (b) Monopolistic competition market ;
Description : One of the essential conditions of Monopolistic competition is - (1) Many buyers but one seller (2) Price discrimination (3) Product differentiation (4) Homogeneous product
Last Answer : (3) Product differentiation Explanation: Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not ... the market becomes more like a perfectly competitive one where firms cannot gain economic profit.
Description : One of the essential conditions of Monopolistic competition is (1) Many buyers but one seller (2) Price discrimination (3) Product differentiation (4) Homogeneous product
Last Answer : Product differentiation
Description : …………….. may start a price war in order to grab a larger share of market (a) Oligopoly ; (b) Duopolies ; (c) Monopolist ; (d) Monopolistic competition
Last Answer : (a) Oligopoly
Description : This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by keeping R&D costs, Production costs and raw material costs to a minimum, ... Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : a. Broad Cost Leader
Description : Market demand curve for a commodity is a (a) Horizontal summation of all the individual demand curve for that product (b) Summation of demand curve of competitive products (c) Demand curve of average demand and price of previous six months (d) Projected demand schedule for next three months
Last Answer : (a) Horizontal summation of all the individual demand curve for that product
Description : …….. is the price at which demand for a commodity is equal to its supply (a) Normal price ; (b) Equilibrium price ; (c) Short run price ; (d) Secular price
Last Answer : ; (b) Equilibrium price ;
Description : The total market approach to finding a target market will probably be UNSUCCESSFUL when : 1. product differentiation is used 2. the firm defines the total market as its target market 3. people ... have heterogeneous needs 4. people within the market have homogeneous needs 5. none of these
Last Answer : people within the market have heterogeneous need
Description : The total market approach to finding a target market will probably be UNSUCCESSFUL when: A)product differentiation is used B)the firm defines the total market as its target market C)people within the market have heterogeneous needs D)people within the market have homogeneous needs
Last Answer : C)people within the market have heterogeneous needs
Description : Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost
Last Answer : (a) Total revenue less total cost ;
Description : In a perfect competitive market price determines – (a) What to buy ; (b) What to produce ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : What will happen if a firm in perfect competitive market, increase its output by 50% (a)Total sales revenue will also increase by 50% ; (b) (b)Selling price will come down by 50%; (c)Total sales revenue will decrease by 50% ; (d)Profit will increase by 25%
Last Answer : (a)Total sales revenue will also increase by 50% ;
Description : Which of the following faces a downward sloping demand curve (a) Firm in a competitive market ; (b) Firm in a monopoly market ; (c) Both ; (d) None
Last Answer : (b) Firm in a monopoly market ;
Description : In a competitive market ……………….. is the price taker (a) Firm ; (b) Industry ; (c) Consumer ; (d) Trade association
Last Answer : (a) Firm ;
Description : In a competitive market ………. is the price maker (a) Firm ; (b) Industry ; (c) Consumer ; (d) Trade association
Last Answer : (b) Industry ;
Description : This strategy will concentrate on the Traditional and Low End segment. Competitive advantage will be gained by keeping R&D costs, Production costs, and raw materials costs to a minimum, ... Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : b. Niche Cost Leader
Description : What is meant by focused differentiation? A. Providing a high perceived value service or product to a selected market segment that justifies a substantial price premium B. ... differentiation D. Concentrating on differentiation as the primary means of achieving competitive advantage
Last Answer : Providing a high perceived value service or product to a selected market segment that justifies a substantial price premium
Description : This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy ... Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : e. Broad Differentiation
Description : Product differentiation is the most important feature of - (1) Pure competition (2) monopolistic competition (3) monopoly (4) oligopoly
Last Answer : (2) monopolistic competition Explanation: There are six characteristics of monopolistic com-petition (MC): (1) Product differentiation; (2) many firms; (3) Free entry and exit in the long run; (4) ... decision making; (e) market power; and (0 Buyers and Sellers do not. have perfect information.
Description : When Bell Laboratories attempts to anticipate the effect of new products and processes on its own innovations, other business organisations, and society in general, it is engaging in: A)product differentiation B)monopolistic competition C)technology assessment D)innovative marketing
Last Answer : C)technology assessment
Description : Product differentiation is the most important feature of (1) pure competition (2) monopolistic competition (3) monopoly (4) oligopoly
Last Answer : monopolistic competition
Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated
Last Answer : (a) Complementary to each other ;
Description : Which of these is not a cause of price discrimination (a) Ignorance of consumer ; (b) Place differentiation ; (c) Variation in quality ; (d) Tax differentiation
Last Answer : (d) Tax differentiation
Description : The type of competitive structure that exists when a firm with many potential competitors attempts to develop a differential marketing strategy to establish its own market share is 1. mixed competition 2. oligopoly 3. monopolistic competition 4. perfect competition 5. none of these
Last Answer : perfect competition
Description : The type of competitive structure that exists when a firm with many potential competitors attempts to develop a differential marketing strategy to establish its own market share is: A)Monopoly B)Oligopoly C)Monopolistic Competition D)Perfect Competition
Last Answer : C)Monopolistic Competition
Description : In the beer industry, a few large brewers supply the majority of the market. The brewing industry is an example of which of the following competitive structures: A)Monopoly B)Oligopoly C)Monopolistic Competition D)Perfect Competition E)Monopsony
Last Answer : B)Oligopoly
Description : In the short run an oligopolistic firm will (a) Make profits ; (b) Incur losses ; (c) Just break even ; (d) Any of these three are possible
Last Answer : (d) Any of these three are possible
Description : A natural monopoly has declining – over large range of output (a) Long run average cost ; (b) Short run average cost ; (c) Long run total cost; (d) Long run marginal cost
Last Answer : (a) Long run average cost ;
Description : Fixed costs are (a) Avoidable in the short run ; (b) Sunk cost in the short run ; (c) Sunk cost in the long run (d) Unavoidable in the long run
Last Answer : (b) Sunk cost in the short run ;
Description : In economic theory, in the short run all the cost are…………… (a) Fixed ; (b) Variable ; (c) Controllable ; (d) Semi variable
Last Answer : (a) Fixed ;
Description : In the short run, diminishing marginal returns is implied by (a) Rising MC ; (b) Falling MC ; (c) Rising AVC ; (d) Constant TC
Last Answer : (a) Rising MC ;
Description : In the short run which of the following is fixed (a) Labour ; (b) Capital ; (c) Raw material ; (d) None
Last Answer : (b) Capital ;
Description : If total production increases in the short run, the total cost will also…….. (a) Increase due to increase in fixed cost ; (b) Increase due to increase in variable cost (c) Increase due to increase in total cost ; (d) Remain constant
Last Answer : (b) Increase due to increase in variable cost
Description : The law of diminishing returns applies in……………. (a) Short run ; (b) Long run ; (c) Very short run ; (d) All the time period
Last Answer : (a) Short run ;
Description : Repo Market means (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument (b) A money market ... instrument which helps in collateral short term borrowing through sale and purchase operation in debt instrument
Last Answer : (a) A money market instrument which helps in collateral short term borrowing and lending through sale and purchase operation in debt instrument
Description : Very short period is the market condition where the supply remain perfectly (a) Elastic ; (b) Inelastic ; (c) Unity elastic ; (d) Elasticity less than 1
Last Answer : (b) Inelastic ;
Description : What type of competitive structure exists when a few sellers control a large portion of the supply of a product? A)Monopoly B)Oligopoly C)Monopolistic Competition D)Mixed Competition E)Perfect Competition
Description : What type of competitive structure exists when a firm produces a product that has no close substitutes? A)Monopoly B)Oligopoly C)Monopolistic Competition D)Perfect Competition E)Mixed Competition
Last Answer : A)Monopoly
Description : In the long run a firm in perfect competition earns (a) Normal profit only ; (b) Abnormal profit ; (c) Average profit of past five years; (d) 12.33% profit on capital employed
Last Answer : (a) Normal profit only ;
Description : Porter's notion of a differentiation strategy is best described as one in which firms seek a competitive advantage . A. Through achieving a match between their internal and external ... competitors. C. Through concentrating on a narrow market segment. D. Through establishing their uniqueness
Last Answer : Through establishing their uniqueness
Description : Porter's notion of a differentiation strategy is best described as one in which firms seek a competitive advantage . A. Through achieving a match between their internal and external environments ... . C. Through concentrating on a narrow market segment. D. Through establishing their uniqueness.
Last Answer : Through establishing their uniqueness.
Description : Long-term equilibrium of an Industry under a perfectly market conditions in achieved when (a) All the firms are earning normal profit ; (b) All the firms are in equilibrium ; (c) There is no further entry or exit of firms from the industry ; (d) All the three
Last Answer : (d) All the three
Description : A competitive firm maximizes its total profit when ……………… (a) Average cost equal average realization ; (b) Marginal cost equals Price; (d) Total revenue is the maximum ; (d) MR = AR
Last Answer : (d) Total revenue is the maximum ;
Description : The quantity of a commodity that an individual is willing to purchase over a specified period of time is a function of except ………. (a) Price of the commodity ; (b) Price of the competitive products; (c) His disposal income ; (d) Price of factor of production
Last Answer : ; (d) Price of factor of production
Description : Complementary goods are those which are …………… (a) Consumed simultaneously ; (b) Close competitive ; (c) Both ; (d) Unrelated
Last Answer : (a) Consumed simultaneously ;