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
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
In a perfectly competitive market ________ price of a commodity prevails.
Different
Uniform
Very high
Very low
The demand curve of monopoly is
Inelastic
Elastic
Perfectly Elastic
Perfectly Inelastic
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
Classifying market as open market and black market is based upon
Competition
Time Period
Legality
Area
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
Which of the following statements about the market supply curve for a product is false?
The market supply curve represents the individual supply curves of all firms which produce the product added together
The market supply curve may shift if there is a change in the behaviour of some firms which produce the product
The market supply curve may shift if there is change in the price of the product
The market supply curve may shift if there is a change in the number of firms which supply the product
