#1
Which of the following is a characteristic of perfect competition?
A large number of buyers and sellers
Product differentiation
Barriers to entry
Control over prices by individual firms
#2
In which market structure does a firm have the least control over the price of its product?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#3
What happens to a perfectly competitive firm's marginal revenue when it increases its output?
It stays constant
It decreases
It increases
It becomes negative
#4
What is the relationship between price and marginal revenue for a monopolist?
They are equal
Marginal revenue is greater than price
Price is greater than marginal revenue
They are unrelated
#5
What is the relationship between marginal revenue and average revenue for a perfectly competitive firm?
They are equal
Marginal revenue is greater than average revenue
Marginal revenue is less than average revenue
They are unrelated
#6
What is the relationship between total revenue and price in a perfectly competitive market?
They are directly proportional
They are inversely proportional
They are unrelated
They are equal
#7
In a monopoly, what is the shape of the marginal revenue curve?
Horizontal
Vertical
Downward sloping
Upward sloping
#8
What is the relationship between price elasticity of demand and total revenue?
They have a direct relationship
They have an inverse relationship
They are unrelated
They are equal
#9
Which of the following is a characteristic of monopolistic competition?
Homogeneous products
A large number of firms
Price taker
Barriers to entry
#10
What is the relationship between marginal revenue and total revenue for a perfectly competitive firm?
They are equal
Marginal revenue is greater than total revenue
Marginal revenue is less than total revenue
Marginal revenue and total revenue are unrelated
#11
If a firm's total revenue is increasing at a decreasing rate, what can be said about the price elasticity of demand?
Demand is perfectly elastic
Demand is perfectly inelastic
Demand is elastic
Demand is inelastic
#12
What is the formula for calculating total revenue?
TR = P × Q
TR = Q / P
TR = P - Q
TR = Q - P
#13
What is the formula for calculating average revenue?
AR = TR / Q
AR = Q / TR
AR = TR × Q
AR = TR - Q
#14
Which of the following is true about the relationship between marginal revenue and total revenue for a monopolist?
Marginal revenue is always positive
Marginal revenue is always negative
Marginal revenue is zero when total revenue is maximized
Marginal revenue is greater than total revenue
#15
Which of the following is true about a monopolist's demand curve?
It is perfectly elastic
It is perfectly inelastic
It is downward sloping
It is horizontal
#16
In a perfectly competitive market, what is the profit-maximizing output level for a firm?
Where marginal revenue equals marginal cost
Where marginal revenue equals average revenue
Where marginal cost equals average cost
Where total revenue equals total cost