Market Structures: AP Microeconomics online Test

The individual firm has no control on the price of commodity under: I) Monopolistic Competition II) Monopoly Competition III) Perfect Competition
I only
II only
III only
I and II
II and III
Under which form of Market, does the “Excess Capacity” exist in the firm?
Perfect Competition
Monopoly
Monopolistic
Oligopoly
All of these
In the short period, the firm would close down if:
Variable costs exceed the Fixed costs
Variable costs are less than the Fixed costs
Total Revenue exceeds the Total Variable Cost
Total Revenue is less than the Total Variable Cost
Total Revenue equals the Fixed Cost
Freedom of Entry or Exit to firms ensures that:
There are no supernormal profits in the long run
All firms make only normal profits in the long run
In the short run, existing firms might make supernormal profits
Loss making firms leave the industry
All of the above
Monopolistic Competition differs from Perfect Competition as in the Monopolistic Competition, the firms
Do not aim to maximize profits
Have an Inelastic Demand Curve
Have an Elastic Demand Curve
Sell identical products
Aim to improve the quality of the commodity
The term ‘Group Equilibrium’ is used for the analysis of:
Perfect Competition
Oligopoly
Kinked Demand Curve Theory
Monopolistic Competition
Monopsony
Which of the following has been stated incorrectly?
There are few firms selling close substitutes products under Monopolistic Competition
There is one buyer in a Monopsony Market Structure
There is one buyer in a Monopoly Market Structure
There are many sellers in the Perfect Competition Market Structure
There are many buyers in the Perfect Competition Market Structure
Under which form of Market Structure, is the Output expanded till the rising Marginal Cost becomes less than the Price?
Perfectly Competitive firm
Perfectly Competitive industry
Perfectly uncompetitive firm
Imperfectly Competitive firm
Perfectly Competitive market
The Long run Equilibrium of the firm is given by MC=MR=AC=AR for:
Competitive Firm
Imperfectly Competitive Firm
Oligopolist Firm
Monopolist Firm
None of the Above
Consumers will get a variety of goods under:
Perfect competition
Monopoly
Oligopoly
Imperfect competition
None of the above
Description:

The firm or industry faces Competition in the Market in many forms. As a student of AP Microeconomics, it is important to understand the minute differences among all the market Structures. Take this short test to assess your knowledge of the basics of the Perfect Competition Market Structure, Monopoly Market Structure Monopolistic Competition Market Structure, Oligopoly Market Structure and Monopsony Competition Market Structure. The Multiple Choice questions are based on the basics of the features conditions prevailing in each Market structures and the premises for Equilibrium.

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