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CA Foundation Price-Output Determination under Different Market Forms — practice questions — page 3

Explore 81 free Price-Output Determination under Different Market Forms questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Price-Output Determination under Different Market Forms questions and exercises with answers

Showing questions 61–81 of 81.

A cartel differs from a monopoly because it involves:Read the answer and worked solution →Holding a dominant market position is often:Read the answer and worked solution →Which theory says monopolies may act as if facing competition?Read the answer and worked solution →Monopolies may grow complacent because they need not be:Read the answer and worked solution →Perfect information in perfect competition means all participants know:Read the answer and worked solution →Perfect competition assumes transaction costs are:Read the answer and worked solution →Which market is given as an example of a very imperfect market?Read the answer and worked solution →Without externalities, perfectly competitive equilibria are:Read the answer and worked solution →A firm that must simply accept the going market price is called a:Read the answer and worked solution →Which type of product is sold by firms in a perfectly competitive market?Read the answer and worked solution →The demand curve facing a single firm in perfect competition is:Read the answer and worked solution →Perfect competition is allocatively efficient as output is set where:Read the answer and worked solution →A monopoly has no supply curve because it has abandoned:Read the answer and worked solution →What attracts new firms into a perfectly competitive industry?Read the answer and worked solution →Normal profit is treated by economists as a component of:Read the answer and worked solution →A firm sells 200 units at Rs 50 each, with average cost of Rs 42 per unit. Its economic profit is:Read the answer and worked solution →In the short run, perfectly competitive firms are:Read the answer and worked solution →Which economic theorem says competitive equilibria are Pareto-efficient?Read the answer and worked solution →Which markets come closest to perfect competition in practice?Read the answer and worked solution →The equilibrium price of a perfectly competitive market is fixed where:Read the answer and worked solution →Critics say the perfect competition model wrongly shows all agents as:Read the answer and worked solution →

Worked practice questions

A cartel differs from a monopoly because it involves:

  1. A single seller firm
  2. Firms acting together
  3. A single buyer firm
  4. A state-granted licence
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Correct answer: B. Firms acting together

A cartel coordinates several separate providers, whereas a monopoly has just one.

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Holding a dominant market position is often:

  1. Not illegal in itself
  2. Always banned outright
  3. A criminal offence
  4. Punished by default
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Correct answer: A. Not illegal in itself

Dominance alone is lawful; only abusive behaviour by a dominant firm draws sanctions.

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Which theory says monopolies may act as if facing competition?

  1. Cobweb theory
  2. Comparative cost
  3. Kinked demand
  4. Contestable markets
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Correct answer: D. Contestable markets

Contestable-market theory holds that the threat of entry can discipline even a sole supplier.

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