Chapter 5: Market Structure and Pricing — Online MCQ Test
ECONOMICS · CLASS 11th · Tamil Nadu State Board
Practice Chapter 5: Market Structure and Pricing with a free chapter-wise online MCQ test.
This chapter covers: This chapter examines market classifications pricing mechanisms and output determination under perfect competition. Students analyze imperfect competition forms including monopoly....
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Chapter 5: Market Structure and Pricing — Important Questions & Answers
In which market structure is the product homogeneous?
- A. Perfect competition
- B. Monopoly
- C. Monopolistic competition
- D. Oligopoly
Answer: A. Perfect competition
In perfect competition, firms sell identical or homogeneous products.
In perfect competition, firms sell identical or homogeneous products.
Which of the following is a characteristic feature of a monopoly?
- A. Many sellers
- B. Single seller
- C. Free entry and exit
- D. Homogeneous products
Answer: B. Single seller
A monopoly is characterized by a single seller dominating the market with no close substitutes.
A monopoly is characterized by a single seller dominating the market with no close substitutes.
In perfect competition, the firm is a price ________.
- A. Maker
- B. Taker
- C. Discriiminator
- D. Leader
Answer: B. Taker
Individual firms in perfect competition are too small to influence market price, so they accept the price set by demand and supply.
Individual firms in perfect competition are too small to influence market price, so they accept the price set by demand and supply.
Why is the demand curve for a monopoly downward sloping?
- A. Because the firm is a price taker
- B. Because the firm has to lower prices to sell more units
- C. Because there are many close substitutes
- D. Because there is free entry into the industry
Answer: B. Because the firm has to lower prices to sell more units
A monopolist faces the entire market demand curve, requiring price reductions to increase sales volume.
A monopolist faces the entire market demand curve, requiring price reductions to increase sales volume.
Which of these scenarios best describes a situation of 'non-price competition'?
- A. A firm lowering its price to undercut competitors
- B. A firm engaging in an advertisement campaign to highlight brand quality
- C. A firm increasing production to benefit from economies of scale
- D. A firm exiting the market due to high production costs
Answer: B. A firm engaging in an advertisement campaign to highlight brand quality
Non-price competition involves improving product quality or marketing rather than changing the price.
Non-price competition involves improving product quality or marketing rather than changing the price.