Q4 of 50 Page 1

The differentiated product is a characteristic of (Choose the correct alternative) :

(a) Monopolistic competition only


(b) Oligopoly only


(c) Both monopolistic competition and oligopoly


(d) Monopoly

The correct answer is option c) Both monopolistic competition and oligopoly. The differentiated product is a characteristic of both monopolistic competition and oligopoly.


More from this chapter

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2

A firm is able to sell any quantity of a good at a given price. The firm’s marginal revenue will be : (Choose the correct alternative)

a) Greater than Average Revenue


b) Less than Average Revenue


c) Equal to Average Revenue


d) Zero

 3

When does ‘change in demand’ take place?

 5

Demand curve of a firm is perfectly elastic under : (Choose the correct alternative)

(a) Perfect competition


(b) Monopoly


(c) Monopolistic competition


(d) Oligopoly

 6

A consumer consumes only two goods X and Y. Marginal utilities of X and Y are 3 and 4 respectively. Prices of X and Y are ` 4 per unit each. Is consumer in equilibrium? What will be the further reaction of the consumer ? Give reasons.