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

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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