Quiz: Micro Economics

Price making ability due to no close competition. The product is a perfect substitute for another product. Prices are determined by supply and demand only. There is free entry and exit in the market.

Inductive method Comparative method Experimental method Deductive method

A perfectly competitive market. A market with a large number of small sellers. A market structure with only two sellers. A market structure with a single seller and no close substitutes for the product.

To determine past sales trends. To audit the supply chain. To predict future demand for products or services. To calculate the current year's profits.

The number of employees in the industry. Market size and growth rate. The color of the product packaging. The personal preferences of the CEO.

A perfectly competitive market. A market with a large number of small sellers. A market structure with only two sellers. A market structure with a single seller and no close substitutes for the product.

It increases. It decreases. It becomes negative. It stays the same.

Money has no marginal utility. The marginal utility of money decreases with income. The marginal utility of money is the highest of all goods. Marginal utility of money is constant.

Satisfaction increases with every additional unit consumed. Additional satisfaction decreases as more units are consumed. Marginal utility is constant regardless of consumption. Marginal utility is unrelated to total utility.

The pricing strategy of the firm. Changes in consumer tastes. Weather patterns or natural disasters. The number of competing products.