CBSE Class 12 Economics Non Competitive Markets MCQs Set C

Question: Differentiated products is a characteristic of
a) Monopolistic competition only
b) Oligopoly only
c) Both Monopolistic competition & Oligopoly
d) Monopoly
Answer: c

Question: In perfect competition, when the marginal revenue and marginal cost are equal, profit is
a) Zero
b) Average
c) Maximum
d) Negative
Answer: c

Question: Market which has two firms is known as
a) Duopoly
b) Monopolistic Competition
c) Oligopoly
d) None of These
Answer: a

Question: The firm and the industry are one and the same in
a) Monopolistic competition
b) Monopoly
c) Duopoly
d) Oligopoly
Answer: b

Question: Cartels exist in
a) Oligopoly
b) Duopoly
c) Monopoly
d) Perfect Competition
Answer: a

Question: Pure oligopoly is based on the
a) Differentiated products
b) Homogeneous products
c) Unrelated products
d) None of these
Answer: b

Question: Which of the following is not the feature of an imperfect competition?
a) Large number of buyers
b) Single seller
c) Homogeneous products
d) Price maker
Answer: c

Question: The firm and the industry are one and the same in—
a) Perfect competition
b) Monopolistic competition
c) Duopoly
d) Monopoly
Answer: d

Question: Which market has characteristic of product differentiation?
a) Monopolistic competition
b) Oligopoly
c) Monopoly
d) Perfect competition
Answer: a

Question: A monopolist is a price
a) Acceptor
b) Taker
c) Giver
d) Maker
Answer: d

Question: Under which one of the following forms of market structure does a firm have no control over the price of its product?
a) Monopoly
b) Monopolistic competition
c) Oligopoly
d) Perfect competition
Answer: d

Question: Monopolistic competition differs from perfect competition primarily because
a) In monopolistic competition firms can differentiate their products
b) In perfect competition firms can differentiate their products
c) In monopolistic competition entry into the industry is blocked
d) In monopolistic competition there are relatively few barriers to entry
Answer: a

Question: Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that
a) The firm operates in a perfectly competitive market
b) The firm can sell all that it wants to at the established market price
c) The XYZ Co. is not a price taker because it must lower the price to sell additional units
d) The XYZ Co. will not maximise profits because price and revenue are subject to change
Answer: c

Question: Oligopoly having identical products is known as
a) Pure oligopoly
b) Collusive oligopoly
c) Independent oligopoly
d) None of above
Answer: a

Question: In monopolistic competition, which of the following curves generally lies below the demand curve and slopes downward?
a) Marginal cost
b) Average cost
c) Average revenue
d) Marginal revenue
Answer: d

Question: Which of the following is not a characteristic feature of imperfect competition?
a) Prices vary from seller to seller
b) All the products are homogeneous
c) Profits of the seller is included in the price
d) None of above
Answer: b

Question: In monopoly
a) There are many producers
b) There is no seller
c) There is no buyer
d) There is single seller
Answer: d

Question: In the monopolistic market, which curve lies below the demand curve and slopes downward?
a) Marginal cost
b) Average cost
c) Average revenue
d) Marginal revenue
Answer: d

Question: Cartels exist in
a) Oligopoly
b) Duopoly
c) Monopoly
d) Perfect competition
Answer: a