MULTIPLE-CHOICE QUESTIONS WITH ANSWERS RELATED TO PRICING OF PRODUCTS UNDER DIFFERENT MARKET CONDITIONS: PERFECT AND IMPERFECT COMPETITION, MONOPOLY
Which market structure is characterized by mutual interdependence among firms?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: C) Oligopoly
In a monopolistic competition market, firms have some control over price due to:
A) Government regulations
B) Identical products
C) Product differentiation
D) High barriers to entry
Answer: C) Product differentiation
Which market structure is characterized by a single seller with complete control over the market?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In India, which regulatory body monitors unfair trade practices in the automobile industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Automotive Research Association of India (ARAI)
D) Ministry of Road Transport and Highways
Answer: B) Competition Commission of India (CCI)
Which market structure is most likely to result in allocative inefficiency?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In a monopolistic competition market, firms can differentiate their products through:
A) Government subsidies
B) Lower prices than competitors
C) Product branding and advertising
D) Collusion with other firms
Answer: C) Product branding and advertising
Which market structure tends to have the most intense price competition?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In India, which regulatory body ensures fair competition in the agricultural sector?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Ministry of Agriculture and Farmers Welfare
D) National Bank for Agriculture and Rural Development (NABARD)
Answer: C) Ministry of Agriculture and Farmers Welfare
Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and perfect information?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In a perfectly competitive market, what happens to firms earning economic losses in the short run?
A) New firms enter the market, driving prices up.
B) The government imposes price controls.
C) Existing firms exit the market, driving prices up.
D) The firm continues operating in the short run.
Answer: C) Existing firms exit the market, driving prices up.
Which market structure is most conducive to economies of scale?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In India, which regulatory body ensures fair competition in the food processing industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Food Safety and Standards Authority of India (FSSAI)
D) Ministry of Food Processing Industries
Answer: C) Food Safety and Standards Authority of India (FSSAI)
Which market structure is characterized by a few sellers offering differentiated products?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In a perfectly competitive market, what happens if a firm increases its price above the market equilibrium?
A) The firm earns supernormal profits.
B) The firm faces no consequences.
C) The firm loses customers to competitors.
D) The government intervenes and sets a price ceiling.
Answer: C) The firm loses customers to competitors.
Which market structure is most likely to result in non-price competition?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In India, which regulatory body ensures fair competition in the pharmaceutical industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Drugs Controller General of India (DCGI)
D) Ministry of Health and Family Welfare
Answer: C) Drugs Controller General of India (DCGI)
Which market structure tends to have the most significant barriers to entry?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In a monopolistic competition market, what happens if a firm earns economic profits in the short run?
A) New firms enter the market, driving prices down.
B) The firm faces government intervention.
C) The firm earns supernormal profits.
D) Existing firms exit the market.
Answer: A) New firms enter the market, driving prices down.
Which market structure is most conducive to product innovation and variety?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In India, which market structure is most common in the retail industry?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
Which market structure is characterized by mutual interdependence among firms?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: C) Oligopoly
In a monopolistic competition market, firms have some control over price due to:
A) Government regulations
B) Identical products
C) Product differentiation
D) High barriers to entry
Answer: C) Product differentiation
Which market structure is characterized by a single seller with complete control over the market?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In India, which regulatory body monitors unfair trade practices in the automobile industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Automotive Research Association of India (ARAI)
D) Ministry of Road Transport and Highways
Answer: B) Competition Commission of India (CCI)
Which market structure is most likely to result in allocative inefficiency?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In a monopolistic competition market, firms can differentiate their products through:
A) Government subsidies
B) Lower prices than competitors
C) Product branding and advertising
D) Collusion with other firms
Answer: C) Product branding and advertising
Which market structure tends to have the most intense price competition?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In India, which regulatory body ensures fair competition in the agricultural sector?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Ministry of Agriculture and Farmers Welfare
D) National Bank for Agriculture and Rural Development (NABARD)
Answer: C) Ministry of Agriculture and Farmers Welfare
Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and perfect information?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In a perfectly competitive market, what happens to firms earning economic losses in the short run?
A) New firms enter the market, driving prices up.
B) The government imposes price controls.
C) Existing firms exit the market, driving prices up.
D) The firm continues operating in the short run.
Answer: C) Existing firms exit the market, driving prices up.
Which market structure is most conducive to economies of scale?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In India, which regulatory body ensures fair competition in the food processing industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Food Safety and Standards Authority of India (FSSAI)
D) Ministry of Food Processing Industries
Answer: C) Food Safety and Standards Authority of India (FSSAI)
Which market structure is characterized by a few sellers offering differentiated products?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In a perfectly competitive market, what happens if a firm increases its price above the market equilibrium?
A) The firm earns supernormal profits.
B) The firm faces no consequences.
C) The firm loses customers to competitors.
D) The government intervenes and sets a price ceiling.
Answer: C) The firm loses customers to competitors.
Which market structure is most likely to result in non-price competition?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In India, which regulatory body ensures fair competition in the pharmaceutical industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Drugs Controller General of India (DCGI)
D) Ministry of Health and Family Welfare
Answer: C) Drugs Controller General of India (DCGI)
Which market structure tends to have the most significant barriers to entry?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In a monopolistic competition market, what happens if a firm earns economic profits in the short run?
A) New firms enter the market, driving prices down.
B) The firm faces government intervention.
C) The firm earns supernormal profits.
D) Existing firms exit the market.
Answer: A) New firms enter the market, driving prices down.
Which market structure is most conducive to product innovation and variety?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
In India, which market structure is most common in the retail industry?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: B) Monopolistic competition
Which market structure is characterized by mutual interdependence among firms?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: C) Oligopoly
In a monopolistic competition market, firms have some control over price due to:
A) Government regulations
B) Identical products
C) Product differentiation
D) High barriers to entry
Answer: C) Product differentiation
Which market structure is characterized by a single seller with complete control over the market?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In India, which regulatory body monitors unfair trade practices in the automobile industry?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Automotive Research Association of India (ARAI)
D) Ministry of Road Transport and Highways
Answer: B) Competition Commission of India (CCI)
Which market structure is most likely to result in allocative inefficiency?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: D) Monopoly
In a monopolistic competition market, firms can differentiate their products through:
A) Government subsidies
B) Lower prices than competitors
C) Product branding and advertising
D) Collusion with other firms
Answer: C) Product branding and advertising
Which market structure tends to have the most intense price competition?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In India, which regulatory body ensures fair competition in the agricultural sector?
A) Reserve Bank of India (RBI)
B) Competition Commission of India (CCI)
C) Ministry of Agriculture and Farmers Welfare
D) National Bank for Agriculture and Rural Development (NABARD)
Answer: C) Ministry of Agriculture and Farmers Welfare
Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and perfect information?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly
Answer: A) Perfect competition
In a perfectly competitive market, what happens to firms earning economic losses in the short run?
A) New firms enter the market, driving prices up.
B) The government imposes price controls.
C) Existing firms exit the market, driving prices up.
D) The firm continues operating in the short run.
Answer: C) Existing firms exit the market, driving prices up.
