This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If Nike and Adidas merge, it would be a..... merger A) Horizontal. B) Vertical. C) Insane. D) Ladder. Show Answer Correct Answer: A) Horizontal. 2. A barrier to entry is any obstacle that makes it difficult for a new firm to enter a market. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. This market structure occurs when an industry has many businesses selling the same product A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 4. Which of the following is NOT true about monopolies? A) They have very limited political influence. B) They can become inefficient. C) They can lose money and be unprofitable. D) They may fail to innovate. Show Answer Correct Answer: A) They have very limited political influence. 5. When buying produce at the grocery store, many people shop around for the best deal, because when it comes down to it, an apple is an apple. This is an example of: A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 6. Why does the US government allow technological monopolies by protecting patents and copyrights? A) To help the wealthy stay on top. B) To promote innovation. C) To create technological monopolies. D) To promote perfect competition. Show Answer Correct Answer: B) To promote innovation. 7. If a firm in a perfectly competitive market chooses its profit-maximizing quantity, which of the following MUST be true? A) MR > MC. B) P = MC. C) MR < P. D) MC > ATC. E) A. P > ATC. Show Answer Correct Answer: B) P = MC. 8. How are people's inventions protected? A) Copyrights. B) Public franchise. C) Patents. D) Seals. Show Answer Correct Answer: C) Patents. 9. A business owner who prefers to maintain complete control of all business activities might consider structuring the business as a(n) A) Sole proprietorship. B) Franchise. C) General partnership. D) Corporation. Show Answer Correct Answer: A) Sole proprietorship. 10. Some economists call an industry a(n) ..... if the four largest businesses produce at least 70-80% of the output. This is a market controlled by a few. A) Oligopoly. B) Monopoly. C) Pure competition. D) Monopolistic competition. Show Answer Correct Answer: A) Oligopoly. 11. Jeans A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: C) Perfect Competition. 12. Which market structure has only one producer? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 13. Products that are identical are called A) Cartels. B) Commodities. C) Collusions. D) Capital. Show Answer Correct Answer: B) Commodities. 14. Which market structure involves selling "similar" products and only has a FEW firms? A) Perfect Competition. B) Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Oligopoly. 15. Business decision to combine resources, ideas, and innovation A) Merger. B) Trust. C) Collusion. D) Cartel. Show Answer Correct Answer: A) Merger. 16. Ethan, Lily, and Noah are playing a game of 'Market Masters'. They are discussing about different market structures. Can you help them identify which market structure has a large number of buyers and sellers? A) Monopolistic Competition. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Perfect Competition. 17. Price fixing and collusion often occur in this type of market structure A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 18. -One seller-Complete barriers to market entry-No product differentiation, Which of the following is described by the characteristics listed above? A) Monopoly. B) Oligopoly. C) Pure competition. D) Monopolistic competition. Show Answer Correct Answer: A) Monopoly. 19. A market structure in which one firm has a monopoly because of its location is a A) Natural monopoly. B) Geographic monopoly. C) Technological monopoly. D) Government monopoly. Show Answer Correct Answer: B) Geographic monopoly. 20. Which one IS one of the 4 market structures? A) Market Economy. B) Sole Proprietorship. C) Monopolistic Competition. D) Corporation. Show Answer Correct Answer: C) Monopolistic Competition. Next →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books