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
A monopolist will determine very ________ price for a commodity having inelastic demand.
High
Low
Normal
Constant
Fresh vegetable market is _________ market.
Very short Period
Short Period
Long Period
Very long Period
In case of _________ market the policy of product differentiation is adopted by producers.
Perfect Competition
Imperfect Competition
Which of the following statements about a firm which is a price taker is false?
The firm will sell its product at the going market price
The demand curve faced by the firm is downward sloping
The demand curve faced by the firm is horizontal even though the market demand curve is downward sloping
The firm would sell nothing if it set a higher price than the market price
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 ________ market there are two sellers of the commodity.
Monopoly
Duopoly
Oligopoly
Market of gold and silver is _________ market.
International
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
A firm can fix independent price under _________ market.
Pure Competition
