This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If coffee and cream are complementary goods, an increase in the price for coffee will A) Increase the price of cream. B) Decrease the demand for cream. C) Have no effect of the price of cream. D) Have no effect on the demand for cream. Show Answer Correct Answer: B) Decrease the demand for cream. 2. When Gillette Co. unveiled Mach3, the world's first triple-blade razor, it took a bold gamble ..... Mach3 cartridges were to sell for around $ 1.60 each. Skeptics predicted the personal-care giant would soon be forced to cut that price. But the price is holding and Mach3 has become the No. 1 blade and razor. What's the secret to pricing power? For starters, a commitment to innovation. Gillette spent nearly $ 1 billion on the development and initial marketing of Mach3. Source:Business Week, February 1, 1999 Based on the passage, what type of monopoly is helping Gillette Co. maintain a high price for its Mach3 razor? A) Natural monopoly. B) Technological monopoly. C) Government monopoly. D) Geographic monopoly. Show Answer Correct Answer: B) Technological monopoly. 3. Laws that define monopolies and give government the power to control them and break them up A) Regulation. B) Antitrust legislation. C) Market allocation. D) Deregulation. Show Answer Correct Answer: B) Antitrust legislation. 4. Which of the following best describes what will happen in the long run if many firms in a perfectly competitive market are experiencing short-run economic losses? A) Firms' costs will decrease, causing their economic profits to increase. B) Firms will enter the industry, causing market demand to increase. C) Firms will go out of business, causing market demand to decrease. D) Firms will enter the industry, causing market supply to increase. E) Firms will go out of business, causing market supply to decrease. Show Answer Correct Answer: E) Firms will go out of business, causing market supply to decrease. 5. The reliance on one another to provide the resources and goods and services that people need. A) Law of demand. B) Businesses. C) Factor market. D) Economic interdependence. Show Answer Correct Answer: D) Economic interdependence. 6. What kind of monopoly often provides public goods? A) Natural Monopoly. B) Geographic Monopoly. C) Government Monopoly. D) Technological Monopoly. Show Answer Correct Answer: C) Government Monopoly. 7. What is the true of a market structure? A) It is the way an individual business is set up. B) It describes the level of competition between businesses. C) An example is a partnership. D) A purely competitive market sells similar products. Show Answer Correct Answer: B) It describes the level of competition between businesses. 8. The easiest form of business to start and end is a(n) A) Limited liability partnership. B) Monopoly. C) Franchise. D) Proprietorship. Show Answer Correct Answer: D) Proprietorship. 9. The least competitive market structure A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. 10. All of these options describe a characteristic of monopolistic competition EXCEPT which option? A) Many buyers. B) Identical products. C) A downward-sloping demand curve. D) No barriers to entry. E) Many sellers. Show Answer Correct Answer: B) Identical products. 11. Which market structure is the worst for consumers? A) Oligopoly. B) Geographic monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Geographic monopoly. 12. Why do oligopolies frequently appear to act together. A) They collude (secretly scheme together) to keep the prices in their industry unnaturally high. B) If one company has a lower price or a new innovation, all the other companies will have to match it or risk losing customers. C) They are all controlled by one large parent company that delegates what actions each smaller company must perform . D) There is generally only one company that actually comes up with good ideas, and all the other companies follow whatever actions they take. Show Answer Correct Answer: B) If one company has a lower price or a new innovation, all the other companies will have to match it or risk losing customers. 13. This may be the closest to perfect competition A) Ebay. B) Amazon. C) Walmart. D) Local Farmer's Market. Show Answer Correct Answer: D) Local Farmer's Market. 14. A ton of companies make clothing but some brands are able to charge more because of perceived status or quality. this puts them in which market structure A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 15. Factors that make it difficult and costly for an organization to enter a particular task environment or industry A) Barriers to entry. B) Regulations. C) Costs. D) Monopolies. Show Answer Correct Answer: A) Barriers to entry. 16. Fiscal policy refers to the power of the federal government to A) Tax and spend. B) Print money. C) Control credit. D) All of the above. Show Answer Correct Answer: A) Tax and spend. 17. Promotes a just and fair system A) Freedom. B) Equity. C) Security. D) Growth. Show Answer Correct Answer: B) Equity. 18. Which type of business organization is owned and operated by a single individual? A) Partnership. B) Sole proprietorship. C) Corporation. D) Limited liability company tagsSSEMI3. Show Answer Correct Answer: B) Sole proprietorship. 19. Which statement is most accurate? A) Markets can sometimes fail. B) Markets can theoretically fail, but not in reality. C) Market failure is a myth. D) Market failure is an unproven hypothesis. Show Answer Correct Answer: A) Markets can sometimes fail. 20. Competition promotes innovation. A) True. B) False. Show Answer Correct Answer: A) True. ← 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