This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most recognizable form of non-price competition is? A) More Locations. B) Better Customer Service. C) Advertising. D) Low Price. Show Answer Correct Answer: C) Advertising. 2. What is the definition of an oligopoly? A) One firm producing 95 percent of the output. B) Two to four firms producing 70 percent to 80 percent of the output. C) Eight to ten firms producing 60 percent to 70 percent of the output. D) Eight to ten firms producing 90 percent of the output. Show Answer Correct Answer: B) Two to four firms producing 70 percent to 80 percent of the output. 3. In monopolistic competition, product differentiation can be achieved by ..... A) Advertising. B) Cooperation. C) Causing non-price competition. D) All of the above. Show Answer Correct Answer: A) Advertising. 4. If Price > ATC;Then, Firm earns an economic profit A) True. B) False. Show Answer Correct Answer: A) True. 5. Which market structure has a single seller with complete control over the market? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: A) Monopoly. 6. -Few sellers-Some control over price-High market entry barriers-Some product differentiation, What type of market structure is described by the list above? A) Oligopoly. B) Natural monopoly. C) Pure competition. D) Monopolistic competition. Show Answer Correct Answer: A) Oligopoly. 7. What is the main goal of firms in a monopolistic competition market structure? A) To differentiate their products and create a loyal customer base to maintain market power and earn profits. B) To sell identical products at the lowest price possible. C) To collaborate with other firms to eliminate competition. D) To reduce the quality of their products to increase sales. Show Answer Correct Answer: A) To differentiate their products and create a loyal customer base to maintain market power and earn profits. 8. Which of these describes a perfectly competitive market? A) Products are exactly the same. B) There are a few producers. C) Businesses spend money to advertise. D) Many products are similar. Show Answer Correct Answer: A) Products are exactly the same. 9. In this market structure, sellers can enter and exit the market freely A) Monopoly. B) Oligopoly. C) Monopolistic Compeition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 10. The Supply Curve has moved left. Where is the new equilibrium price and quantity? A) Higher, higher. B) Lower, lower. C) Lower, higher. D) Higher, lower. Show Answer Correct Answer: D) Higher, lower. 11. A contract that gives a single firm the right to sell its good within an exclusive market A) Franchise. B) License. C) Market power. D) Monopoly. Show Answer Correct Answer: A) Franchise. 12. Define Income Elasticity of Demand A) YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus. B) YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus. C) YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus. D) YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus. Show Answer Correct Answer: A) YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus. 13. Which of the following is NOT a definition for market? A) Any structure that allows buyers and sellers to exchange goods, services and information. B) Any mechanism that facilitates the interaction of buyers and sellers with a view to the purchase and sale of good or service. C) The amount of persons/firms who provide a product for sale. D) All persons who are willing and able to purchase a particular goods or service. Show Answer Correct Answer: C) The amount of persons/firms who provide a product for sale. 14. These could be as a result of legal obstacles from specific laws, patents, copyrights, and trademarks, or they could be due to natural obstacles like extensive economies of scale for large producers or dominating a key resource needed to produce the good. A) Scarcity. B) Number of sellers. C) Product differentiation. D) Barriers to entry. Show Answer Correct Answer: D) Barriers to entry. 15. Which type of market structures has very few producers (companies) that control the majority of the market?Hint:think of the soda market/phone companies A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 16. Do you think this firm has control over price? A) Yes. B) No. C) Maybe. D) None of above. Show Answer Correct Answer: B) No. 17. The marginal revenue curve in monopoly: A) Equals the demand curve. B) Is parallel with the demand curve. C) Lies below and converges with the demand curve. D) Lies below and diverges from the demand curve. Show Answer Correct Answer: D) Lies below and diverges from the demand curve. 18. Use the following headlines to answer the question below. Many sellers in marketProduct must be different to attract consumersLots of advertisingEasy to enter and exit the market The above headlines are all examples of A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Pure (perfect) competition. Show Answer Correct Answer: B) Monopolistic competition. 19. A market dominated by a few large, profitable firms A) Monopoly. B) Natural Monopoly. C) Government Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 20. NPF-AI developed to mimic teachers. What curve is impacted in the education labour market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: A) Demand Left. ← 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