This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In this market, sellers have the least control over prices: A) Perfect competition. B) Monopolistic competition. C) Oligoply. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 2. In a market economy, what determines what and how much to produce? A) Random selection. B) Producer's personal preferences. C) Supply and demand. D) Government regulations. Show Answer Correct Answer: C) Supply and demand. 3. Tony opens up a hot chocolate stand for two hours. He spends $ 10 for ingredients and sells $ 60 worth of tasty beverages. In the same two hours, he could have provided Uber services (illegally because he isn't 18) and earned $ 40. Tony's accounting profit is ..... and an economic profit of ..... A) $ 50, $ 10. B) $ 90, $ 50. C) $ 10, $ 50. D) $ 50, $ 90. Show Answer Correct Answer: A) $ 50, $ 10. 4. In which way does monopolistic competition differ from perfect competition? A) Average revenue exceeds average cost in long-run equilibrium. B) Barriers exist to the entry of new firms. C) MR exceeds MC in long-run equilibrium. D) Products are differentiated. Show Answer Correct Answer: D) Products are differentiated. 5. What is NOT part of nonprice competition? A) Prices. B) Location. C) Quality. D) Advertising. Show Answer Correct Answer: A) Prices. 6. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly's price and quantity will be which of the following? A) P=Higher; Q=Same. B) P=Lower; Q=Same. C) P=Lower; Q=Higher. D) P=Higher; Q=Lower. Show Answer Correct Answer: D) P=Higher; Q=Lower. 7. Which of these is NOT an entry barrier created by government? A) License. B) Patents. C) Franchise. D) Price discrimination. Show Answer Correct Answer: D) Price discrimination. 8. An economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. A) Market. B) Capital. C) Human Capital. D) None of above. Show Answer Correct Answer: A) Market. 9. Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 10. What does marginal mean in the language of economics? A) Additional. B) Less. C) Satisfaction. D) I can't believe it's not Butter. Show Answer Correct Answer: A) Additional. 11. In this environment, companies sell different products and services, set their own individual prices, fight for market share, and are often protected by barriers to entry and exit. A) Oligopoly. B) Imperfect Competition. C) Capital. D) None of above. Show Answer Correct Answer: B) Imperfect Competition. 12. William, Elijah, and Sophia are discussing market structures in their economics class. They come across a market structure where a few large firms dominate the market. Which market structure are they talking about? A) Oligopoly. B) Monopsons. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 13. The ease of entry and exit means A) Degree of product differentiation. B) Number of companies on the market. C) Ease of entry and exit from the market. D) None of above. Show Answer Correct Answer: C) Ease of entry and exit from the market. 14. A competitive market becomes a monopoly. What is likely to happen? A) Consumer surplus will be reduced by the amount of the deadweight loss. B) Producer surplus will be reduced by the amount of the deadweight loss. C) The loss in consumer surplus will be balanced by the increase in producer surplus. D) There will be a transfer of surplus from consumer to producer. Show Answer Correct Answer: D) There will be a transfer of surplus from consumer to producer. 15. What consist of differentiated products? A) Close but not perfect substitutes. B) Many perfect substitutes. C) No close substitutes. D) No substitutes of any kind. Show Answer Correct Answer: B) Many perfect substitutes. 16. What is the relationship between competitive behavior and competitive market structure? A) Competitive behavior has no impact on the competitive market structure. B) Competitive market structure is determined by government regulations. C) Competitive behavior and competitive market structure are unrelated. D) Competitive behavior is influenced by the competitive market structure. Show Answer Correct Answer: D) Competitive behavior is influenced by the competitive market structure. 17. A cable television company merges with a company that uses satellite dish technology to provide television service to consumers. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: A) Horizontal. 18. Public utilities (think FPL/City Water) are an example. A) Perfect Competition. B) Natural Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: B) Natural Monopoly. 19. Why do US markets dominated by oligopolies result in higher prices than markets with normal competition? A) The oligarchies are interdependent with each other. As a result, when one company lowers their price, the other companies will have to lower their prices to match. B) The companies of the oligarchy can collude (scheme together) to fix the prices at a unnaturally high rate compared to normal competition. C) Keeping up with the other companies of the oligarchy is expensive. To pay for these innovations, prices rise, and there isn't enough competition to lower it. D) One company controls the whole industry, so they can charge whatever unreasonably high price they want for their product. Show Answer Correct Answer: C) Keeping up with the other companies of the oligarchy is expensive. To pay for these innovations, prices rise, and there isn't enough competition to lower it. 20. Businesses and individuals decide what to produce and buy, and the market determines prices and quantities to be sold. The market will work out the price. A) Free-Market economy. B) Socialism. C) Communism. D) Mixed Economy. Show Answer Correct Answer: A) Free-Market economy. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books