List of top Commerce Questions on Microeconomics

Which of the following are the features of monopolistic competition? A. Large number of buyers and sellers
B. Product differentiation
C. Free entry and exit of firms
D. Homogeneous products
E. Selling costs

Arrange the following market forms in descending order of degree of competition:
A. Monopoly
B. Monopolistic Competition
C. Perfect Competition
D. Oligopoly

Assertion (A):
The demand curve under perfect competition is perfectly elastic.
Reason (R):
Under perfect competition, firms are price takers and can sell any quantity at prevailing market price.

If demand for a commodity increases with increase in consumer income, the commodity is known as:

Which of the following are the determinants for the price elasticity of demand?
(A) Availability of close substitutes
(B) Necessities versus Luxuries
(C) Definition of the market
(D) Time Horizon

It is said to be economies of scale when:

A firm's long-run decision to enter in or exit from a market depends upon the firm's ability to manage total revenue (TR), total cost (TC), quantity produced (Q), average total cost (ATC) and price of the goods (P). Which among the following is best suited for an entrepreneur interested to enter in a market?

For a certain establishment, the total revenue function $R$ and the total cost function $C$ are given by \[ R = 83x - 4x^2 - 21 \quad \text{and} \quad C = x^2 - 12x + 48x + 11, \] where $x$ is the output. Obtain the output for which profit is maximum.