MCQs Micro Economics in English, Equilibrium of Firm under Monopoly

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Micro Economics    

Equilibrium of Firm under Monopoly

How many firms are there in monopoly?

Only one	Many
Limited	Unlimited

This is the basic condition of monopoly.

Freedom of entry	Homogenous price
No interference of Government	None

A monopolistic firm wishes to:

Maximise profit	Minimize loss
To cover loss	To gain profit

In monopoly, generally the prices are

The same	Different
Higher	Lower

In monopoly:   

P = MR = AR	P = MR
AR =  MR	All

These curves are the same in monopoly.            

Price & MR	Price, MR & AR
MR & AR	TR & MR

At breakeven point in monopoly, firm gains

Normal profit	Higher profit
Normal loss	Higher loss

TC means

TFC+TVC	FC + VC
Both	None

A monopoly firm may be in equilibrium:

At profit	In loss
At break even	All

Discrimination policy is effective in.

Monopoly	Perfect Competition
Both	None

Firms are free to enter or exit in

Monopoly	Perfect competition
Duopoly	Oligopoly

These are kinds of monopoly.

Pure monopoly	Duopoly
Oligopoly	All

If the firm is in loss at equilibrium, it wishes to:

Maximise profit	Minimize loss
To cover loss	To gain profit

When a firm enjoys profit at equilibrium, its Avg. Cost (AC) curve must be    

Over Avg. Revenues (AR)	Below Avg. Revenue (AR)
At Avg. Revenue (AR)	None

At breakeven point, firm’s Avg. Cost (AC) curve must be         

Over Avg. Revenues (AR)	Below Avg. Revenue (AR)
Equal to Avg. Revenue (AR)	None

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