This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An agreement by firms to charge uniform prices for a product is called. A) Price-fixing. B) Monopoly. C) Positive externality. D) Negative externality. Show Answer Correct Answer: A) Price-fixing. 2. What is the equilibrium position of a Perfectly Competitive Firm in the Short Run? A) The point where MC = MR and MC is rising. B) The point where AC = AR and AC is falling. C) The point where MC = MR and MC is falling. D) The point where AC = AR and AC is rising. Show Answer Correct Answer: A) The point where MC = MR and MC is rising. 3. A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a A) Geographic monopoly. B) Natural monopoly. C) Government monopoly. D) Technological monopoly tagsSSEMI3. Show Answer Correct Answer: D) Technological monopoly tagsSSEMI3. 4. When firms agree to charge the same or similar prices for a product, this is known as A) Price-fixing. B) Independent behavior. C) Natural monopoly. D) Let it happen. Show Answer Correct Answer: A) Price-fixing. 5. The cartel model of oligopoly leads to: A) All the firms in the industry acting as one to set a monopoly price. B) Each producer acting independently of others. C) Firms following the low-price firm in the industry. D) Differences in cost of production discouraging individual firms from cheating. Show Answer Correct Answer: A) All the firms in the industry acting as one to set a monopoly price. 6. Which of the following is NOT one of the reasons why markets fail? A) Resources that can't or won't move. B) Not enough competition. C) Not enough information. D) Too much competition. Show Answer Correct Answer: D) Too much competition. 7. A market structure that has many sellers, has a standardized products and is easy to enter and exit A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. E) Barriers to entry. Show Answer Correct Answer: D) Perfect Competition. 8. System of business where individuals (owners) are free to decide what to produce, how to produce it, and what price to sell it A) Communism. B) Free Enterprise. C) Socialism. D) Mixed Economy. Show Answer Correct Answer: B) Free Enterprise. 9. Ethan, Luna, and Mason are running a lemonade stand in a perfectly competitive market. What is the shape of the demand curve for their lemonade stand? A) Perfectly inelastic (vertical). B) Downward sloping. C) Upward sloping. D) Perfectly elastic (horizontal). Show Answer Correct Answer: D) Perfectly elastic (horizontal). 10. A perfectly competitive demand curve is considered to be ..... while a monopoly demand curve is considered to be ..... A) Flat, curved. B) Flat, downward-sloping. C) Downwardly sloping, downward-sloping. D) None of above. Show Answer Correct Answer: B) Flat, downward-sloping. 11. All of the following are conditions of monopolistic competition EXCEPT A) Differentiated products. B) Many sellers (firms). C) Slight control over price. D) High barriers to entry. Show Answer Correct Answer: D) High barriers to entry. 12. A market structure in which a small number of firms face competition from potential entrants. What does this describe? A) A contestable market. B) A monopoly. C) Perfect oligopoly. D) Monopolistic competition. Show Answer Correct Answer: A) A contestable market. 13. What type of lifespan do most partnerships have? A) Limited life. B) Unlimited life. C) Eternal life. D) Life sentence. Show Answer Correct Answer: A) Limited life. 14. A large number of businesses selling the same products at the same price A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Perfect competition. 15. SSEMI3 b This is a market structure in which a single seller controls the market. A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 16. Ryan Brown and Leighton Jones have a partnership. Leighton embezzles the company's profits and moves to Mexico. Which of the following describes Ryan's liability? A) Because Ryan didn't do anything illegal, he is not responsible. B) Ryan's personal assets are at risk. C) Ryan's personal assets are completely safe. D) None of above. Show Answer Correct Answer: B) Ryan's personal assets are at risk. 17. Which of the following would be most likely be subject to government monopoly regulations? A) Computer software company. B) Large oil company. C) Local restaurant. D) Local cable company. Show Answer Correct Answer: D) Local cable company. 18. Business model in which the owner gets all of the profit A) Sole proprietorship. B) Corporation. C) Partnership. D) None of above. Show Answer Correct Answer: A) Sole proprietorship. 19. Which market structure is characterized by a few large firms dominating the market? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopsons. Show Answer Correct Answer: A) Oligopoly. 20. A market with many well informed buyers and sellers, identical products, and free entry and exit A) Perfect competition. B) Barriers to entry. C) Start up costs. D) Imperfect competition. Show Answer Correct Answer: A) Perfect competition. ← 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