Firm Behavior & Market Structure-Monopolistic Competition [AP (Advanced Placement) Microeconomics]: Questions 1 - 3 of 34

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Question 1

Appeared in Year: 2014

Question Assertion-Reason▾

Assertion(Ꭺ)

The concept of supply curve is meaningless for the monopolist. (June)

Reason(Ꭱ)

Monopolists are price setters; it does not make any use to ask what output they would produce at various prices.

Choices

Choice (5)Response

a.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

b.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

c.

Ꭺ is true but Ꭱ is false

d.

Ꭺ is false but Ꭱ is true

e.

Both Ꭺ and Ꭱ are false

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Question 2

Appeared in Year: 2014

Question MCQ▾

The practice of charging each consumer the reservation price is called (June)

Choices

Choice (5)Response

a.

Third degree price discrimination

b.

Peak load pricing

c.

Inter-temporal price discrimination

d.

First degree price discrimination

e.

All of the above

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Question 3

Appeared in Year: 2014

Question Match List-Ⅰ List-Ⅱ▾

Match items in List – I with items in List – II and select the correct answer from the code given below: (June)

List-Ⅰ (Group I)List-Ⅱ (Group II)
(A)

The Screening Hypothesis

(i)

Paul Miller and Paul A. Volcker

(B)

The problem of moral hazard in the case of medical insurance

(ii)

K. J. Arrow

(C)

Job Market Signalling

(iii)

M. Spencer

(D)

The market for lemons

(iv)

George A. Akerlof

Choices

Choice (5)Response
  • (A)
  • (B)
  • (C)
  • (D)

a.

  • (iv)
  • (i)
  • (ii)
  • (iii)

b.

  • (i)
  • (ii)
  • (iii)
  • (iv)

c.

  • (iv)
  • (iii)
  • (i)
  • (ii)

d.

  • (i)
  • (iv)
  • (iii)
  • (ii)

e.

All of the above

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