Quiz Space

Managerial Economics · End Term · 31 Aug 2025 · May 2025 term · Set QDB3

Managerial Economics End Term 31 Aug 2025 — Question 37

Question 37

+1 markOne correct option

What is true about monopolistic competition

  1. A

    Firms compete by selling differentiated products that are highly, but not perfectly, substitutable

  2. B

    Entry and exit are free in the market

  3. C

    None

  4. D

    Both the firms compete by selling differentiated products that are highly, but not perfectly, substitutable and entry and exit are free in the market

Show answer

Correct answer

  • D

    Both the firms compete by selling differentiated products that are highly, but not perfectly, substitutable and entry and exit are free in the market

Video solution

The video solution to this question is being recorded and will play here. Until then, the answer key is above.

See the whole paperTake it as a mock test

Question 37 of 43 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 31 Aug 2025, in the May 2025 term (IIT M IMPROVEMENT FN EXAM QIA1 31 Aug 2025). It carries 1 mark.

More questions from this paper

  1. Q1If the price elasticity of demand for the product is –2, find the marginal cost (in ₹) of the last unit produced
  2. Q2What is the firm’s percentage markup of price over marginal cost (as a % of the price)? _
  3. Q3Suppose that the average cost of the last unit produced is ₹15 and the firm’s fixed cost is ₹2000. Find the firm’s prof…
  4. Q4Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  5. Q5Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  6. Q6Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  7. Q7Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  8. Q8Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  9. Q9Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  10. Q10Two used car dealerships compete side by side on a main road. The first, Hamid’s Cars, always sells high-quality cars t…
  11. Q11The equilibrium price of ball pens in the domestic market without any imports will be P= _
  12. Q12Consumer surplus in this case will be CS =
  13. Q13Producer surplus in this case will be PS =
  14. Q14In case of import without tariff, how many total units of ball pens will be imported _
  15. Q15In case of import without tariff, how many units of ball pens are being supplied by domestic firms
  16. Q16With the tariff, how many units would be imported?
  17. Q17How much would domestic producer surplus change compared to the case with imports without tariffs if the government int…
  18. Q18How much revenue would the domestic government collect from the imports of ball pens due to this import duty of ₹10?
  19. Q19The equilibrium quantity and price before incidence of tax are
  20. Q20Consumer surplus before incidence of tax is
  21. Q21Producer surplus before incidence of tax is
  22. Q22The equilibrium quantity after the incidence of tax is
  23. Q23The new price that buyer pays after incidence of tax is
  24. Q24The net price received by the seller after incidence of tax
  25. Q25The loss in consumer surplus due to incidence of tax is
  26. Q26The loss in producer surplus due to incidence of tax is
  27. Q27The total tax revenue is
  28. Q28Deadweight loss of tax is
  29. Q29A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates a…
  30. Q30A beekeeper lives adjacent to an apple orchard. The orchard owner benefits from the bees because each hive pollinates a…
  31. Q31For which values of p will you decide not to get an MBA?
  32. Q32If P=0.4, what is the highest price the university can charge for you to be willing to go ahead and get an MBA?
  33. Q33What price would this monopolist will set?
  34. Q34How many apartments will he offer for rent?
  35. Q35What price would he set if he had 40 apartments?
  36. Q36How many would he rent if he had 40 apartments?
  37. Q38Choose the correct statement
  38. Q39Choose the correct alternative
  39. Q40Adverse selection occurs when
  40. Q41Moral hazard occurs when contracts are written in such a way that
  41. Q42If the income of the consumer increases and the one of the prices decreases at the same time, the consumer will not nec…
  42. Q43A monopolist never produces in