KIIT University 2008 micro-economics - exam paper

B)

Testgen ques. still do not copy to other applications.decreases; reduces
C)

increases; increases
D)

has no effect on; increases
E)

decreases; increases


19)

Which of the subsequent market structures are likely to have long-run profits that are greater than zero?

I. Monopoly
II. Oligopoly
III. Monopolistic competition
IV. Perfect competition


19)

______
A)

I only
B)

IV only
C)

I and II
D)

I, II, and III
E)

III and IV


20)

As compared to a monopoly, the markup of price over marginal cost for a monopolistically competitive firm is ________, and thus deadweight loss is ________.

20)

______
A)

greater; greater
B)

greater; less
C)

less; greater
D)

less; less
E)

greater; equal

21)

As more firms enter a monopolistically competitive market, the firms already in the market will experience modifications. Which of the subsequent is not 1 of the likely changes?

21)

______
A)

The firm's demand curve will become less elastic.
B)

The firm's demand curve will shift to the left.
C)

The firm will have fewer customers.
D)

The firm's demand curve will flatten.
E)

The firm's customers will become more price-sensitive.

22)

Sticky prices

22)

______
A)

occur when firms change prices frequently.
B)

are associated with monopolistic markets.
C)

occur when firms are unconcerned about losing market share.
D)

occur when firms regularly use price modifications to attract rival customers.
E)

occur when firms are reluctant to change prices.

23)

If an oligopolistic market is currently in a Nash equilibrium,

23)

______
A)

there is little stability for firms.
B)

firms ignore the possible reactions of rivals in creating their strategies.
C)

experimentation with features and prices would be a key market feature.

Earning:   Approval pending.