Price determination: perfect competition, monopolistic competition, oligopoly, monopoly, price discrimination - Question Bank
1. Which of the following is a key characteristic of oligopoly that distinguishes it from monopolistic competition?
2. In perfect competition, the industry demand curve is:
3. If marginal cost is constant, a monopolist practicing third-degree price discrimination will charge:
4. Which market structure is most likely to lead to both productive and allocative inefficiency?
5. A situation where firms in an oligopoly compete aggressively on price is known as:
6. In the long-run equilibrium of monopolistic competition, firms operate:
7. Which of the following is NOT a condition required for price discrimination?
8. The demand curve for a firm in monopolistic competition is:
9. If a monopolist can perfectly price discriminate (first-degree price discrimination), it will produce:
10. Which market structure is characterized by 'few dominant firms'?
11. In perfect competition, the firm's supply curve is the:
12. Price leadership in an oligopoly occurs when:
13. Which of the following is an example of product differentiation in monopolistic competition?
14. In the short run, a monopolist will continue to produce as long as:
15. A firm that can successfully price discriminate must have:
16. The Lerner Index, a measure of market power, is calculated as (P - MC) / P. It is typically highest for firms operating under:
17. Which market structure is characterized by strategic decision-making where each firm's actions depend on the anticipated actions of its rivals?
18. In monopolistic competition, the long-run equilibrium is characterized by:
19. The shutdown point for a perfectly competitive firm in the short run occurs when the price is equal to:
20. If a firm can charge different prices to different customers for the same product, it is likely engaging in:
21. Barriers to entry are typically highest in which market structure?
22. A monopolist faces a downward-sloping demand curve, which means that to sell more units, the monopolist must:
23. Which of the following is a characteristic of monopolistic competition but not perfect competition?
24. What is the primary goal of a cartel?
25. In the context of perfect competition, the industry supply curve is derived from:
26. A firm is practicing third-degree price discrimination if it:
27. Which market structure offers the greatest potential for non-price competition (e.g., advertising, branding)?
28. The condition P > MR for a monopolist implies that the monopolist:
29. In an oligopoly, firms may engage in price wars, which are characterized by:
30. A natural monopoly arises when:
31. If a firm in monopolistic competition lowers its price, its competitors are likely to:
32. Which market structure has the lowest degree of market power for individual firms?
33. In the long run, a perfectly competitive firm operates at the minimum point of its Average Total Cost (ATC) curve, reflecting:
34. Price discrimination is illegal under certain conditions, particularly when it:
35. Which of the following is a characteristic of a monopoly?
36. In monopolistic competition, the product is:
37. The 'kinked demand curve' model is often associated with which market structure, attempting to explain price rigidity?
38. Which market structure results in the highest price and lowest output compared to others, assuming similar cost conditions?
39. A cartel is a form of:
40. What is a characteristic feature of oligopolistic markets?
41. In perfect competition, the long-run equilibrium occurs when firms earn:
42. Which condition must be met for a firm to successfully practice price discrimination?
43. In monopolistic competition, firms earn supernormal profits in the short run but tend towards normal profits in the long run due to:
44. A monopolist maximizes profit by producing at the output level where:
45. Under perfect competition, the demand curve faced by an individual firm is:
46. Price discrimination is the practice of selling the same product at different prices to different buyers. This is typically possible for firms operating under which market structure?
47. In an oligopoly market, the actions of one firm significantly impact the others. This is known as:
48. Which market structure features a large number of firms selling differentiated products?
49. What is the defining characteristic of a monopoly market structure?
50. In which market structure are there a large number of buyers and sellers trading a homogeneous product?