SERIAL

Question Option A Option B Option C Option D

NUMBER SR. NO.
Homogeneous Free entry and Government
1 1 Which of the following is not the feature of perfect competition ? Price taker product exit intervention
When price is lower than average total cost there will be Shut down Equlibrium
3 2 ______________. point point Loss point Profit point
MC curve
should cut MR
Under perfect compeition, the firm is in equilibrium when curve from Both 1 and 2
5 3 ______________. MR=MC below option None of these
In the long run, the firm is in equilibrium of the point where the
7 4 ____________. LMC > LMR LMC < LMR LMC = LMR All of these
Demand for a product of a firm in perfect competition is Relatively Relatively
9 5 _______________. elastic Unitary elastic Perfectly elastic inelastic
Supernormal
11 6 ____________ is a situation of no profit no loss. pofit Normal profit Losses None of these
A firm's shut down point is where average revenue is less than Average Marginal
13 7 ________________. variable cost revenue Total fixed cost None of these
Perfect Monopolistic
15 8 Economists call a market that has only one producer ______________. competition Monopoly competition Oligopoly
Economic Structural
17 9 Formation of monopoly due to patent rights is _____________. Legal barrier barrier Natural barrier barrier
19 10 Under monoploy, there is __________ seller. Single Few Large None of these
Monopoly Both 1 and 2
21 11 ____________ has the ability to set the price. Political power power option None of these
Perfect Monopolistic
23 12 Under ___________, firm and industry refer to one and the same thing. competition Oligopoly competition Monopoly
25 13 In the long run, the monopoly firm usually makes ____________. Excess profit Normal profit Excess loss None of these
In the long run, a firm under monopolistic competition will get Supernormal
27 14 ____________ profit. pofit Normal profit Excess profit None of these
Waste of expenditure in the form of cross-transport is found in Perfect Monopolistic
29 15 _____________. competition Monopoly competition Oligopoly
Monopolistic competition is associated with which type of wastes
31 16 _____________. Excess capacity Unemployment Cross transport All of these
Monopolistic competition is distinctly characterised by Price Product
33 17 ________________. discrimination differentiation Monopoly All of these
Selling costs has become integral part of monopolistic competition Stiff Product
35 18 because of _____________. competition differentiation Globalization None of these
 Increase Create
Selling cost helps a firm under monopolistic competition to demand for the Widen the awareness of
37 19 _________________. product market the product All of these
Non-price
39 20 Which of the following is not the pattern of oligopoly behaviour ? Price war Price leadership competition Price control
Group Large number
41 21 Which of the following is not the feature of oligopoly ? Price rigidity Selling cost behaviour of seller
43 22 The aim of the cartel is maximising ____________ profit. Accounting Joint Government Individual
In _____________ firms jointly fix prices and output through Both 1 and 2
45 23 agreements. Price leadership Cartel option None of these
____________ oligopoly occurs when the firms combine together
47 24 instead of competing and follow common policy. Collusive Non-collusive Open Closed
49 25 Kinked demand curve indicates ____________________. Price rise Price fall Price rigidity All of these
Perfect Monopolistic
51 26 Price discrimination is generally pracised under ___________. competition competition Oligopoly Monopoly
53 27 Under marginal cost pricing, ___________ costs are ignored. Variable cost Fixed cost marginal cost None of these
Marginal cost Full cost
55 28 Cost plus pricing is also known as _____________. Transfer pricing Dumping pricing pricing
Pricing of a variety of goods produced by a single firm is called Marginal cost Multi-product Cost plus
57 29 _____________. Dumping pricing pricing pricing
Marginal cost Cost plus
59 30 _____________ is an intra-firm trading of goods and services. Dumping pricing pricing Transfer pricing
Complementary
61 31 Multiple-product pricing can be for _____________ . goods Joint products Substitutes All of these
63 32 Which of the following are not the objectives of price policy ? Survival Money making Market share None of these
When a monopolist charges different prices in different market Age Geographical Use Time
65 33 located at different places is called _____________. discrimination discrimination discrimination discrimination
67 34 ______________ is an advantage of mark-up pricing. Cost recovery Assured profit None of these
69 35 Mark-up pricing is _____________ for a firm trying to enter a market. Not suitable Suitable Appropriate Eligible
Transfer pricing has gained significant importance with the Multinational Less developed
71 36 growth of ___________. companies countries Mergers None of these
Ignores
consumer's Ignore the role Ignore marginal
73 37 ___________ is the disadvantage of cost-plus pricing. preference of competitors cost All of these
Second degree Third degree
In case of ______________, firm charges a different price for every unit First degree price price
75 38 consumed. discrimination discrimination discrimination None of these
The expected value against the investment revenue is refered to as Internal rate of Profitability Net present Return on
77 39 _______________. return indices value capital
79 40 IRR does not take into consideration _____________. Cost of capital Rate of return Present value Discount rate
81 41 Capital budgeting relates to _________________ investment. Short term Medium term Long term All of these
Indiffeence in
83 42 If NPV of the project is positive, the project is ____________________. Rejected Acceptable choice None of these
Search of new Project Feasibility
85 43 The major steps involved in investment appraisal ______________. proposals classification study All of these
Pricing of Borrowing of Short term Long term
87 44 Capital budgeting relates to ______________. products funds investment investment
A poject is more likerly to be accepted if the Discounted Present More than Less than Equal to
89 45 Value is _______________. investment investment investment Equal to zero
Both 1 and 2
91 46 Pay back period method is more suitable to _____________. Long run Short run option None of these
Less than the Equal to the Greater than
market rate of market rate of the market rate
93 47 A project is profitable if the IRR is __________. interest interest of interest All of these
95 48 Pay back period method focuses on _____________. Rate of profit Rate of interest Innovation None of these
Classification of Decision Performance
97 49 Capital budgeting consists of _____________. projects making review All of these
Risk and
99 50 Capital budgeting helps to reduce __________. Investment Profit Capital uncertainty

Note: The above MCQs are sample Mcqs of your

syallbus. It is not the exact question paper for exam.