CA/CS Foundation MCQ Question Determination Of Markets-III

Test Preparation on CA/CS Foundation MCQ Questions Determination Of Markets-III

1.

Under Price Discrimination the Producer Firm may charge lower prices from a market If Price Elasticity(e)-

1e = 1
2e < 1
3e > 1
4e = 0

2.

Price Discrimination Is not possible If the market is an Indivisible whole of Buyers This statement is -

1True
2False
3Partially True
4None of the above

3.

For practicing Price Discrimination the Seller should be able to dlvid^ his market into two or more submarkets The statement is - n

1True
2False
3Partially True
4None of the above

4.

Price Discrimination is possible -

1Only under Monopoly situation
2Under any market form
3Only under Oligopoly
4Only under Perfect Competition

5.

Discriminating Monopoly Is possible if two markets have -

1Rising Cost Curves
2Rising and declining Cost Curves
3Different Elasticities of Demand
4Equal Elasticities of Demand

6.

Discriminating Monopolist divides the total production in two markets In a way that -

1MR earned In market with higher elasticity of demand is greater than the other with lower elasticity of demand
2MR earned in market with lower elasticity of demand Is greater than the other
3MR earned In each market is the same
4. MR earned in each market is maximum

7.

Which of the following Is false with reference to first degree price discrimination?

1The Monopolist will be able to extract entire Consumers Surplus
2The price of each unit will be different
3By following first degree price discrimination the Monopolist will earn higher profits than he would have earned by adopting a single price
4The price of the first unit will be less than that of the subsequent units

8.

Under Monopolistic Competition there are Sellers

1Many
2Only one-
3A Few
4No

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