This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a good has relatively few substitutes to take its place, what kind of elasticity is it more likely to have? A) Inelastic. B) Unit-Elastic. C) Elastic. D) None of above. Show Answer Correct Answer: A) Inelastic. 2. Which type of market structure is the sweatshirt industry? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 3. In which market structure is there NON-PRICE competition? A) Oligopoly and Monopoly. B) Oligopoly and Monopolistic Competition. C) Monopolistic Competition and Perfect Competition. D) Perfect Competition and Monopoly. Show Answer Correct Answer: B) Oligopoly and Monopolistic Competition. 4. Which market structure is characterized by many firms, differentiated products, and easy entry for new firms? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: A) Monopolistic competition. 5. Government subsidies are more likely to shift a supply curve in which direction? A) No shift. B) Increase to the right. C) Decrease to the left. D) None of above. Show Answer Correct Answer: B) Increase to the right. 6. In which market structure does a firm have the greatest control over its product's price? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: A) Monopoly. 7. Unlike perfect competition, a monopolist can make abnormal profits in the long run. A) True. B) False. Show Answer Correct Answer: A) True. 8. The major focus of sellers in this market is branding and marketing A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 9. Oligopolistic markets would often be under close monitoring by the government to prevent collusion. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. Why is a monopoly able to charge a lower price and produce a higher output level than perfect competition? A) There are high barriers to entry in a monopoly. B) A monopoly is able to reap economies of scale. C) A monopoly is able to earn economic profits. D) A monopoly is a price setter. Show Answer Correct Answer: B) A monopoly is able to reap economies of scale. 11. What is the frequency of a variable? A) The number of times it does not appear in a distribution. B) The number of times it is used after a distribution. C) The number of times it shows on a line graph. D) The number of times it reappears in a distribution. Show Answer Correct Answer: D) The number of times it reappears in a distribution. 12. A competitive market is characterized by A) A large number of sellers and buyers. B) Diverse products. C) Sellers acting together to set prices. D) Uninformed buyers and sellers. Show Answer Correct Answer: A) A large number of sellers and buyers. 13. Mason, Grace, and Ava started a lemonade stand in their neighborhood, which is a perfectly competitive market. What determines the price that they can charge for a glass of lemonade? A) The intersection of the neighborhood's demand for lemonade and their supply. B) Their desired profit margin. C) The government regulations. D) The cost of producing the lemonade. Show Answer Correct Answer: A) The intersection of the neighborhood's demand for lemonade and their supply. 14. This was put in to place that allows the government to control and regulate monopolies. A) Sherman Anti-Trust Act. B) Regulation laws. C) Deregulation laws. D) Collusion. Show Answer Correct Answer: A) Sherman Anti-Trust Act. 15. Which of the following is an example of perfect competition? A) Bananas. B) Public water. C) Grocery stores. D) Running shoes. Show Answer Correct Answer: A) Bananas. 16. Demand is almost always more elastic at higher prices and less elastic at lower prices. A) True. B) False. Show Answer Correct Answer: A) True. 17. Columbia Tires and Pacific Tires together control 75% of the tire market in the country. What would this be? A) A monopoly. B) An oligopoly. C) A perfect competition. D) A monopolistic competition. Show Answer Correct Answer: B) An oligopoly. 18. Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of $ 8. What would be the firm's MARGINAL revenue if it instead produced and sold 4 units of output? A) $ 2. B) $ 8. C) $ 32. D) $ 64. Show Answer Correct Answer: B) $ 8. 19. What does liability mean? A) Legal responsibility. B) Legal representation. C) Ability to lie. D) Trustworthiness. Show Answer Correct Answer: A) Legal responsibility. 20. AN EXAMPLE OF MONOPOLISTIC COMPETITION? A) APPLE IOS. B) SOAP. C) FIDEO SOUP. D) CEREAL. Show Answer Correct Answer: A) APPLE IOS. ← 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