CA Foundation Price-Output Determination under Different Market Forms — practice questions
37 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice CA Foundation Price-Output Determination under Different Market Forms in the app →A perfectly competitive firm faces a market price of ₹ 2 per unit. If it sells 8 units and then sells one moreUnder perfect competition, the demand curve faced by an individual firm is best described as:For a profit-maximising firm to be in equilibrium, two conditions must hold. The first is MR = MC. What is theA market in which there are large numbers of buyers and sellers, a homogeneous product, and free entry and exiIn a competitive industry the demand and supply schedules are: at ₹ 1 demand 60 and supply 5; at ₹ 2 demand 35A price-taking firm has total cost of ₹ 100 at zero output, ₹ 210 at 10 units, and ₹ 300 at 20 units. What is A price-taking burger seller has marginal cost of ₹ 9 at 20 units, ₹ 10 at 30 units, ₹ 14 at 40 units, and ₹ 2A perfectly competitive firm sells at price ₹ 20, which exactly equals its average total cost of ₹ 20 per unitA firm invests ₹ 50,000 of its own capital when the normal market return is 10 percent. If its explicit cost oIn the short run a competitive firm will choose to shut down rather than continue production when the market pAbove the minimum of average variable cost, the short-run supply curve of a perfectly competitive firm coincidWhich equality describes the long-run equilibrium of a firm in a perfectly competitive industry?If firms in a perfectly competitive industry are earning supernormal profits in the short run, what happens inA monopolist's demand schedule shows total revenue of ₹ 18.00 at 2 units and ₹ 25.50 at 3 units. The marginal Which statement about the average revenue and marginal revenue curves of a monopolist is correct?For a monopolist, which of the following is true about the average revenue and marginal revenue values?Which feature distinguishes a monopoly market from a perfectly competitive market?A natural monopoly arises mainly because:Why does a monopolist's marginal revenue lie below its price when it expands sales by one unit?In the long run, a monopolist differs from a perfectly competitive firm in that the monopolist:Price discrimination by a monopolist is possible only when, among other conditions:A discriminating monopolist sets a single price of ₹ 30. In market A elasticity of demand is 2. Using MR = AR(A discriminating monopolist sets price ₹ 30. Market A has elasticity 2 (MR = ₹ 15) and market B has elasticityWhen a discriminating monopolist has reached equilibrium across two sub-markets A and B, where A has less elasA monopolist separates the market into individual consumers and charges each the maximum price he is willing tCharging a lower per-unit price for a larger family pack of soap than for a small pack is an example of:Which characteristic is unique to monopolistic competition compared with perfect competition?In the long run, a firm under monopolistic competition earns only normal profit. This happens because:A firm in long-run equilibrium under monopolistic competition operates with excess capacity. This means it:Under monopolistic competition, firms compete largely through non-price methods. The main reason firms avoid aThe single most important feature that distinguishes oligopoly from other market forms is:The kinked demand curve hypothesis, proposed by Paul Sweezy, is mainly used to explain:Under the kinked demand curve model, the segment of the demand curve above the prevailing price is elastic becA group of firms that explicitly agree to coordinate price and output to act jointly like a monopoly is calledA market structure in which there is a single buyer of a product or factor service is known as:When a dominant low-cost firm sets the price and the smaller fringe firms simply accept and follow it, the marA firm is currently at an output where MR > MC. To maximise profit, the firm should: