List of top Microeconomics Questions on Market structure asked in IIT JAM EN

Consider a firm is having monopoly in production of two goods \(X\) and \(Y\). The markets for the two goods do not interact. The profit function is given by

Let us consider a duopoly market with the following market demand and firm-specific cost functions:

Consider the following demand and supply functions:

A monopolist sells different units of output for different prices, but every individual who buys the same quantity of the good pays the same price. It is known as _ _ _ price discrimination.

For a firm operating in a perfectly competitive market which of the following statements is CORRECT?

A firm is operating in a perfectly competitive environment. A change in the market condition leads to an increase in the firm’s profit by an amount K. Which of the following describes the change in the Producer’s Surplus due to the above change in the market condition?

Two firms, X and Y, are operating in a perfectly competitive market. The price elasticity of supply of X and Y are respectively 0.5 and 1.5. Then

An economy has three firms: X, Y and Z. Every unit of output that X produces creates a benefit of INR 700 for Y and a cost of INR 300 for Z. Firm X’s cost curve is
\(𝐶(𝑄_𝑋) = 2𝑄^2_X + 10\)
where 𝐶 represents cost and 𝑄_𝑋 is the output. The market price for the output of X is INR 1600 per unit. The difference between the socially optimal output and private profit maximizing output of firm X (in INR) is _____ (in integer).

Let a monopolist demand curve be given by $Q = P^e$, where Q is output, P is price, e is the price elasticity of demand (e <-1), and Marginal Cost = Average Cost = $\alpha$. If $P^c$ and PM represent the price under perfect competition and monopoly, respectively, then which of the following is/are NOT correct?
($CS_M$ and $CS_C$ represent the consumer surplus under monopoly and perfect competition, respectively.)

Assume that the cost function for the i^th firm in an industry is given by
C_i = 0.25\(q^2_i\) + 2q_i + 5, i = 1, 2, ..., 150,
where C_i and q_i are cost and output for the i^th firm, respectively.
Let the aggregate inverse demand function be P = 10-0.01Q, where P is the unit price and Q is the aggregate output.
Assuming perfect competition, the equilibrium quantity is _____ (in integer).

Given the following information related to product and money markets,
\(\text{Product Market}\\C = 300 +0.8(Y – T)\\T = 200 +0.2(Y)\\I_0 = 300; G_o = 400\)           \(\text{Money Market}\\\frac{M_0}P=0.4Y-200i\\M_0=900; P = 1 (Fixed)\)
where Y Income, C = Consumption, T = Tax, I₀ = Autonomous Investment, G₀ = Autonomous Government Expenditure, M₀ = Nominal Money Demand, P = Price, and i = Interest Rate.
The equilibrium level of interest rate (in %) is ______ (round off to 2 decimal places)