Micro

Forms of Market

Easy

When Government fix the minimum price of any commodity this move of government is known by:

Price Ceiling.

Price Discrimination.

Floor Price.

Price Rigidity.

✅ Correct Option: 3

Option 1 -> Price Ceiling is a maximum price limit set by government, not a minimum price.

Option 2 -> Price Discrimination is charging different prices to different consumers for the same product.

Option 3 -> Floor Price is the minimum price set by government below which a commodity cannot be sold.

Option 4 -> Price Rigidity refers to prices that remain unchanged despite market fluctuations.

Hence, Option 3: Floor Price -> When the government fixes a minimum price for any commodity, it is called a Floor Price or Price Floor. This is a legally mandated minimum price below which the commodity cannot be sold. It is typically set above the equilibrium price to protect producers/sellers. Common examples include minimum wage laws (floor price for labor) and minimum support prices for agricultural products. The opposite of this is Price Ceiling, which sets a maximum price limit.-> correct

2026: 21 May Shift 2

In a perfectly competitive market firms can enter and exit freely from the market, then the equilibrium price in this condition is always equal to?

2026: 12 May Shift 1

Choose the correct options from the following in respect of Break-even point(BEP) of a firm-

(A) BEP is a point of minimum AVC where the SMC curve cuts the AVC curve.

(B) BEP is a point on the supply curve at which a firm earns only normal profit.

(D) BEP is the point of minimum average cost at which the supply curve cuts the LRAC curve.

Choose the correct answer from the options given below:

2025: 26 May Shift 2

The total revenue of a firm is increasing at a constant rate. Which of the following is true about this firm?

2025: 30 May Shift 1

Which of the following are features of a perfect competitive market?

(A) Free entry and exit of firms.

(B) Huge selling cost.

(D) perfect market knowledge among buyers.

Choose the correct answer from the options given below:

2025: 3 June Shift 1

Identify the incorrect statement regarding price flooring:

2026: 31 May Shift 1

Which of the following combinations are correct about perfectly competitive market?

A. Large number of buyers and sellers.

B. Heterogenous product.

C. Free entry and exit.

D. Price is equal to marginal cost.

Choose the correct answer from the options given below:

When Government fix the minimum price of any commodity this move of government is known by:

Solution

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