CUET Economics: MicroForms of Market. Free, no login required.

Which of the following is not a feature of perfect competition?

In the perfectly competitive market, if 10 packets of bread are sold at the price of Rs. 25 per packet, what will be the total revenue of a bread manufacturer?

1. Rs. 25
2. Rs. 250
3. Rs. 0.4
4. Rs. 2.5

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms

(A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market.

(B) Some new firms will enter the market

(C) At the prevailing market price, each firm is earning supernormal profit.

(D) Demand remains unchanged but the market supply curve shifts rightward

Arrange the following statements related to negative externalities in correct sequence

(A) There is an oil refinery which refines crude petroleum and sells it in the market

(B) Pollution harms well-being and also kills fish or other organisms

(C) Production the refinery may also be polluting the nearby river

(D) Such harmful effects that the refinery is inflicting on others, for which it will not bear any cost, are called externalities

What are the key components of a perfectly competitive market?

(A) Large number of buyers and sellers.

(B) Homogeneous product.

(C) Free Entry and exit.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

Price ceiling is one concept which provides safeguard to______

Which of the following is an example of floor price?

With the shifting demand curve leftward, arrange the following statement in sequential order.

(A) At any given price, demand is less.

(B) Excess supply will be there.

(C) Some producers will decrease the prices of commodity.

(D) At new equilibrium, quantity and price will be less.

Choose the correct answer from the options given below: