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.
Place where buyer and seller bargain a product or service for a price
Place where buyer does not bargain
Place where seller does not bargain
None of the above
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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.
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Price x Quantity
Price x Income
Income x Quantity
None of the above
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Price maker and not price taker
Price taker and not price maker
Neither price maker nor price taker
None of the above
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Maker
Taker
Adjuster
None of the above
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Regional market
Local market
National market
None of the above
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Large number of buyers and sellers
Homogeneous product
Freedom of entry
Absence of transport cost
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Per unit of input
Per unit of output
Different units of input
Different units of output
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TR = P x Q
AR = Price
Negatively - sloped demand curve
Marginal Revenue = Price
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Monopoly
Imperfect Competition
Oligopoly
Perfect competition
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Monopoly
Monopolistic competition
Oligopoly
Perfect competition
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MR / Q
Price x Quantity
TR / Q
None of the above
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Normal profits
Supernormal profits
Production
Costs
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There are many buyers and sellers in the market.
The goods offered for sales are largely the same.
Firms generate small but positive super normal profits in the long run.
Firms can freely enter or exit the market.
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There is a single firm.
The firm is a price taker.
The firm produces a unique product.
The existence of some advertising.
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Unregulated market
Regulated market
Spot market
None of the above
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The firm should do nothing.
The firm should hire less labour.
The firm should increase price.
The firm should increase output.
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Free entry and exit
Abnormal profits in the longrun j
Many sellers
Differentiated products
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Price equals average variable cost
Marginal revenue equals average revenue
Marginal cost equals total revenue
Marginal cost equals marginal revenue
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Whole sale market
Regulated market
Unregulated market
Retail market
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Upward sloping
Downward sloping
Horizontal
Vertical
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Time
Size of the purchase
Income
Any of the above
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Horizontal
Vertical
Positively sloped
Negatively sloped
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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.
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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.
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Horizontal demand curve.
Too much importance to non-price competition.
Price leadership.
A small number of firms in the industry.
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None
Some
Very considerable
None of the above
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Rs.18
Rs.16
Rs.12
Rs.28
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AC = MR
MC = MR
MR = AR
AC = AR
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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.
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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.
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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.
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Ease of entry into the industry.
Product differentiation.
A relatively large number of sellers.
A homogenous product.
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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.
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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.
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Uniform
Different
Less
Zero
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Price
Income
Revenue
None of the above
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Purchase of an additional unit of a commodity
Sales of an additional unit of a commodity
Sale of subsequent units of a product
None of the above
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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.
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Price rigidity is an important features of monopoly.
Selling costs are possible under perfect competition.
Under perfect competition factors of production do not move freely as there are legal restrictions.
An industry consist of many firms.
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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.
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His output is maximum.
He charges a high price.
His average cost is minimum.
His marginal cost is equal to marginal revenue.
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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.
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Monopolistic competition
Monopoly
Perfect competition
Oligopoly
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Under monopoly there is no difference between a firm and an industry.
A monopolist may restrict the output and raises the price.
Commodities offered for sale under a perfect competition will be heterogeneous.
Product differentiation is peculiar to monopolistic competition.
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Perfect competition.
Ooligopoly.
Monopoly.
Monopolistic Competition.
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The supply is fixed
The demand is fixed
Demand and supply are fixed
None of the above
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Profit Curve
Demand Curve
Average Cost Curve
Indifference Curve
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