This quiz titled 'Price Determination In Market' assesses understanding of market equilibrium, marginal revenue, and profit maximization. It challenges learners to apply economic principles to determine optimal pricing and output levels, enhancing their analytical skills in economics.
Rs.20
Rs.19
Rs.10
Rs.1
Rate this question:
Rs.18
Rs.16
Rs.12
Rs.28
Rate this question:
The firm should do nothing.
The firm should hire less labour.
The firm should increase price.
The firm should increase output.
Rate this question:
The change in price divided by the change in output.
The change in quantity divided by the change in price.
The change in P x Q due to a one unit change in output.
Price, but only if the firm is a price searcher.
Rate this question:
The firm is incurring an economic loss.
Implicit costs are Rs. 25,000.
The total economic costs are Rs.1,00,000.
The individual is earning an economic profit of Rs.25,000.
Rate this question:
Large number of buyers and sellers
Homogeneous product
Freedom of entry
Absence of transport cost
Rate this question:
Horizontal
Vertical
Positively sloped
Negatively sloped
Rate this question:
AC = MR
MC = MR
MR = AR
AC = AR
Rate this question:
TR = P x Q
AR = Price
Negatively - sloped demand curve
Marginal Revenue = Price
Rate this question:
Economic costs include the opportunity costs of the resources owned by the firm.
Accounting costs include only explicit costs.
Economic profit will always be less than accounting profit if resources owned and used by the firm have any opportunity costs.
Accounting profit is equal to total revenue less implicit costs.
Rate this question:
An overall decrease in price but an increase in equilibrium quantity.
An overall increase in price but a decrease in equilibrium quantity.
An overall decrease in price and a decrease in equilibrium quantity.
No change in overall price but a reduction in equilibrium quantity.
Rate this question:
Decision making within the firm is usually undertaken by managers, but never by the owners.
The ultimate goal of the firm is to maximise profits, regardless of firm size or type of business organisation.
As the firm's size increases, so do its goals.
The basic decision making unit of any firm is its owners.
Rate this question:
Price will increase.
Price will decrease.
Quantity will increase.
Quantity will decrease.
Rate this question:
The equilibrium price of cameras will increase.
The equilibrium quantity of cameras exchanged will decrease.
The equilibrium price of camera film will decrease.
The equilibrium quantity of camera film exchanged will increase.
Rate this question:
An increase in equilibrium price and quantity.
A decrease in equilibrium price and quantity.
An increase in equilibrium quantity and uncertain effect on equilibrium price.
A decrease in equilibrium price and increase in equilibrium quantity.
Rate this question:
Price will increase; quantity cannot be determined.
Price will decrease; quantity cannot be determined.
Quantity will increase; price cannot be determined.
Quantity will decrease; price cannot be determined.
Rate this question:
A large number of firms.
Perfect mobility of factors.
Informative advertising to ensure that consumers have good information.
Freedom of entry and exit into and out of the market.
Rate this question:
Large number of firms in the industry.
Outputs of the firms are perfect substitutes for one another.
Firms face downward-sloping demand curves.
Resources are very mobile.
Rate this question:
Ease of entry into the industry.
Product differentiation.
A relatively large number of sellers.
A homogenous product.
Rate this question:
There is a single firm.
The firm is a price taker.
The firm produces a unique product.
The existence of some advertising.
Rate this question:
A few dominant firms and substantial barriers to entry.
A few large firms and no entry barriers.
A large number of small firms and no entry barriers.
One dominant firm and low entry barriers.
Rate this question:
The individual firm must have fewer than 10 employees.
The individual firm faces a downward-sloping demand curve.
The individual firm has assets of less than ? 20 lakh.
The individual firm is unable to affect market price through its output decisions.
Rate this question:
Marginal revenue is less than price.
Marginal revenue is equal to price.
Marginal revenue is greater than price.
The relationship between marginal revenue and price is indeterminate.
Rate this question:
In monopolistic competition, firms can differentiate their products.
In perfect competition, firms can differentiate their products.
In monopolistic competition, entry into the industry is blocked.
In monopolistic competition, there are relatively few barriers to entry.
Rate this question:
The efficient output level will be produced in the long run.
Firms will be producing at minimum average, cost.
Firms will only earn a normal profit.
Firms realise all economies of scale.
Rate this question:
His output is maximum.
He charges a high price.
His average cost is minimum.
His marginal cost is equal to marginal revenue.
Rate this question:
Monopoly
Imperfect Competition
Oligopoly
Perfect competition
Rate this question:
Profit Curve
Demand Curve
Average Cost Curve
Indifference Curve
Rate this question:
Monopoly
Monopolistic competition
Oligopoly
Perfect competition
Rate this question:
From different groups of consumers
For different uses
At different places
Any of the above
Rate this question:
Uniform
Different
Less
Zero
Rate this question:
Price and output determination
Price rigidity
Price leadership
Collusion among rivals
Rate this question:
The firm has some, but not complete, control over its product price.
There are so many buyers and sellers in the market that any individual firm cannot affect the market.
Each firm produces a homogeneous product.
There is easy entry into or exit from the market place.
Rate this question:
The firm operates in a perfectly competitive market.
The firm can sell all that it wants to at the established market price.
The XYZ Co. is not a price taker in the market because it must lower price to sell additional units of output.
The XYZ Co. will not be able to maximise profits because price and revenue are subject v to change.
Rate this question:
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
Rate this question:
Response to a price increase is less than the response to a price decrease.
Response to a price increase is more than the response to a price decrease.
Elasticity of demand is constant regardless of whether price increases or decreases.
Elasticity of demand is perfectly elastic if price increases and perfectly inelastic if price decreases.
Rate this question:
Average total cost equals price at the profit-maximising level of output.
Average variable cost equals price at the profit-maximising level of output.
Average fixed cost equals price at the profit-maximising level of output.
Marginal cost equals price at the profit-maximising level of output.
Rate this question:
The firm should shutdown in order to minimise its losses.
The firm should raise its price enough to cover its losses.
The firm should move its resources to another industry.
The firm should continue to operate in the short run in order to minimize its losses.
Rate this question:
Produce where marginal revenue equals marginal cost if it is operating in the short run.
Produce where marginal revenue equals marginal cost if it is operating is the long run.
Shutdown, since it will lose nothing in that case.
Shutdown, since it cannot even cover its variable costs if it stays in business.
Rate this question:
Its average revenue.
Its marginal revenue.
Its marginal utility for money curve.
Its marginal cost curve.
Rate this question:
Horizontal demand curve.
Too much importance to non-price competition.
Price leadership.
A small number of firms in the industry.
Rate this question:
Perfectly competitive.
Monopolistic.
Monopolistically competitive.
Oligopolistic.
Rate this question:
Perfectly competitive.
Monopolistic.
Monopolistically competitive.
Oligopolistic.
Rate this question:
Even monopolistic can earn losses.
Firms in a perfectly competitive market are price takers.
It is always beneficial for a firm in a perfectly competitive market to discriminate prices.
Kinked demand curve is related to an oligopolistic market.
Rate this question:
Normal profits
Supernormal profits
Production
Costs
Rate this question:
AC = AR
MC = MR
MC = AC
AR = MR
Rate this question:
AC = AR
MC = AC
MC = MR
AR = MR
Rate this question:
MC = MR
MC = AC
MC = AR
AR = MR
Rate this question:
Quiz Review Timeline (Updated): Mar 22, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
Wait!
Here's an interesting quiz for you.