Important Questions on Perfect Competition (Economics) for all Competitive Exams

Important Questions on Perfect Competition (Economics)

Important Questions on Perfect Competition (Economics) /Top Ten question on Perfect Competition (Economics) / MCQ’s on Perfect Competition (Economics) / Questions asked in previous year exams on Perfect Competition(Economics)

Perfect Competition (Economy) is a market in which there are many firms selling homogeneous products, large no. of buyers, free entry of firms, perfect knowledge among buyers and sellers of existing market conditions and free mobility of factors of production among alternative uses. Equilibrium price of the commodity is determined by the industry at that point at which market demand for that commodity is equal to aggregate supply by the Industry.


Important Questions on Perfect Competition (Economics)

Important Questions on Perfect Competition (Economics)

1. In perfect competition, there are large no. of _______ .
(a) Buyers
(b) Sellers
(c) Firms
(d) Both (a) and (b)

2. Under perfect Competition ,price or average revenue of the product is equal to :
(a) Marginal Revenue
(b) Total Revenue
(c) Average Cost
(d) None of these

3. In Perfect Competition, price of the Commodity is determined by :
(a) Firm
(b) Industry
(c) Both (a) and (b)
(d) None of these

4. In very short run, price of perishable goods is determined by :
(a) Demand
(b) Supply
(c) Revenue
(d) All of the these

5. In short period, supply curve of the Industry is:
(a) Inelastic
(b) More elastic
(c) Parallel to OX- axis
(d) Parallel to OY- axis

Important Questions on Perfect Competition (Economics)


6. Which kind of price prevails in market in Long-run?
(a) Sub-Normal Price
(b) Market Price
(c) Normal Price
(d) All of these

7. In perfect Competition market, Industry set the price of the Commodity ,where:
(a) Demand = Supply
(b) Demand > Supply
(c) Demand < Supply
(d) Demand / Supply

8. Assumptions of perfect Competition are :
(a) Lack of Transport Cost
(b) Lack of Selling Cost
(c) Same Price
(d) All of these

9. Firm is a Price _______ in case of Perfect Competition.
(a) Taker
(b) Maker
(c) Alterer
(d) None of these

10. According to marshall, shorter the Period, greater will be the influence of _______ and lager the period, greater will be the influence of _______ on price.
(a) Supply, demand
(b) Demand , Supply
(c) Demand , demand
(d) Transaction, money




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1. d

2. a
3. b
4. a
5. b
6. c
7. a
8. d
9. a
10. b

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