# Economics Objective Questions – Chapter 4 – Market

Economics Objective Questions, which are covered in this chapter, relate to the topic, Market. Economics Objective Questions Test contains 10 questions. Answers to Economics Objective Questions are available at the end of the last question.

1.Which of the following is not an essential condition of pure competition?

(a)    Large number of buyers and sellers

(b)    Homogeneous product

(c)     Freedom of entry

(d)    Absence of transport cost

2. Under which of the following forms of market structure does a firm has no control over the price of its product:

(a)    Monopoly

(b)    Oligopoly

(c)     Monopolistic competition

(d)    Perfect competition

3. Given the relation $MR=P(1-\cfrac { 1 }{ e } )$ if e > 1, then :

(a)    MR > 0

(b)    MR < 0

(c)     MR = 0

(d)    None

4. Profits of the firm will be more at:

(a)    MR = MC

(c)     Both of above

(d)    None

5. What should firm do when Marginal revenue is greater than marginal cost?

(a)    Firm should expand output

(b)    Effect should be made to make them equal

(c)     Prices should be covered down

(d)    All of these

6. Under monopoly price discrimination depends upon:

(a)    Elasticity of demand for commodity

(b)    Elasticity of supply for commodity

(c)     Size of market

(d)    All of above

7. Firms in a monopolistic market are price _______:

(a)    Takers

(b)    Givers

(c)     Makers

(d)    Acceptors

8. Market which have two firms are known as:

(a)    Oligopoly

(b)    Duopoly

(c)     Monopsony

(d)    Oligopsony

9. Monopolist can determine:

(a)    Price

(b)    Output

(c)     Either price or output

(d)    None

10. MR of nth unit is given by:

(a)    TRn/TRn – 1

(b)    TRn + TRn – 1

(c)     TRn – TRn – 1

(d)    All of these

1.  (d) Absence of transport cost

2. (d) Perfect competition

3. (a) MR > 0

4. (c) Both of above

5. (a) Firm should expand output

6. (a) Elasticity of demand for commodity

7. (c) Makers

8. (b) Duopoly

9. (c) Either price or output

10 (c) TRn – TRn – 1