In ________ market there are two sellers of the commodity.
Perfect Competition
Monopoly
Duopoly
Oligopoly
When would a perfectly competitive industry have a long run supply curve that slopes downwards?
If the industry has constant costs
If the industry has decreasing costs
If the industry has increasing costs
Never
In a perfectly competitive market ________ price of a commodity prevails.
Different
Uniform
Very high
Very low
Which of the following statement about price leadership is false?
Price leadership is a form of tacit collusion
With dominant price leadership the leader in an industry is the biggest firm
With barometric price leadership the leader may change even if the relative size of each firm stays the same
Price leadership breaks down if input prices or demand conditions change
In case of _________ market the policy of product differentiation is adopted by producers.
Imperfect Competition
Short Period
Very short Period
A firm can fix independent price under _________ market.
Pure Competition
In _________ market goods are sold at uniform price.
Which of the following statements about price taker is false?
They include monopolistic competitors and monopolists
They can always raise their prices and still retain some customers
They may set different prices in the short run and in the long run
We do not analyse them using diagrams with supply and demand curve
Suppose a country uses its resources in a pareto - efficient way - which of the following statements is true?
There might be inefficiency in production
There might be inefficiency in consumption
It might be possible to make one person better off without making another person worse off
There might be considerable inequality of income among the country's citizens
Which of the following statements about industries that are oligopolies is false?
Firms in these industries may attempt to cooperate
Firms in these industries are interdependent
The fact that there is more than one firm in an oligopoly means that there are no barriers to entry
An oligopoly with two firms is called a duopoly
