This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A market structure in which only one seller sells a product for which there are no close substitutes is called a A) Monopoly. B) Oligopoly. C) Trust. D) None of above. Show Answer Correct Answer: A) Monopoly. 2. State or federal laws that regulate big business and labor unions to prevent or dismantle monopolies. A) Zoning Laws. B) Patent. C) Collusion. D) Anti-Trust Legislation. Show Answer Correct Answer: D) Anti-Trust Legislation. 3. An owner who cannot pay the bills may be forced to sell personal assets, as well as those of the business, to pay debts A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: A) Sole proprietorship. 4. Which option below is NOT a characteristic of Monopolistic Competition? A) Many sellers sell similar but not standardized products. B) Few firms hold large market shares. C) One of the most common market structures. D) Uses non-price competition. Show Answer Correct Answer: B) Few firms hold large market shares. 5. Select the correct monopoly:Baltimore Orioles Baseball A) Government Monopoly. B) Technological Monopoly. C) Geographical Monopoly. D) Natural monopoly. Show Answer Correct Answer: C) Geographical Monopoly. 6. What type of economic system does the United States exist on? A) Traditional. B) Market. C) Command. D) Mixed. Show Answer Correct Answer: D) Mixed. 7. Which of the following is not a type of monopoly? A) Natural. B) Geographic. C) Technological. D) Government. E) Environmental. Show Answer Correct Answer: E) Environmental. 8. This means is there any difference between the products sold by the sellers in the market for the good? A) Regulation. B) Price wars. C) Product differentiation. D) Barriers to entry. Show Answer Correct Answer: C) Product differentiation. 9. Pollution released from a factory is an example of a ..... Externality A) Negative. B) Neutral. C) Positive. D) None of above. Show Answer Correct Answer: A) Negative. 10. The cross elasticity of demand for substitutes will always be negative because the when the price of product A increases the quantity demanded of product B also increases A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 11. The price that a firm obtains for its product is not affected by the volume of goods it produces. What should it do to maximise profits? A) Produce until MC = price. B) Produce until AC = price. C) Produce until MR is zero. D) Sell as much as it can produce. Show Answer Correct Answer: A) Produce until MC = price. 12. Which of the following is an example of a cartel? A) NAFTA. B) ASPCA. C) OPEC. D) IRS. Show Answer Correct Answer: C) OPEC. 13. Your family can only get electricity or natural gas to their home through one provider. There is no other option. This is an example of ..... A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopoly. 14. There are fewer firms in Perfect Competition than in Monopolistic Competition A) True. B) False. Show Answer Correct Answer: B) False. 15. In competitive markets A) The products sold are different depending on the firm selling the product. B) It is hard for a seller to enter the market due to barriers to entry. C) Firms will leave the market if they are making economic profits. D) Buyers can expect to find consistently low prices and wide availability of the goods that they want. Show Answer Correct Answer: D) Buyers can expect to find consistently low prices and wide availability of the goods that they want. 16. Regardless of market, a firm will maximize profit where: A) MR = MC. B) MR = ATC. C) MR = min ATC. D) P = ATC. E) P = MC. Show Answer Correct Answer: A) MR = MC. 17. Which type of market structures has many producers (companies) and sell similar but not identical products from each other? These companies have some control over the price and there are low barriers to entry. A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic competition. 18. ONE SELLER DOMINATES THE MARKET A) MONOPOLY. B) OLIGOPOLY. C) PURE COMPETITION. D) PERFECT COMPETITION. Show Answer Correct Answer: A) MONOPOLY. 19. Which of the following is true of the monopoly structure? A) Monopolies tend to generate high profits, have high barriers of entry, and not have significant competition. B) Monopolies tend to generate high profits, have high barriers of entry, and have significant competition. C) Monopolies tend to generate high profits, have low barriers of entry, and not have significant competition. D) None of above. Show Answer Correct Answer: A) Monopolies tend to generate high profits, have high barriers of entry, and not have significant competition. 20. The reason excess capacity occurs in a monopolistic competitive market is because of the company A) Using advertising media to introduce the product. B) Setting a price lower than marginal cost. C) Produces its output not at the lowest average total cost level. D) Producing output whose demand is perfectly elastic. E) Dealing with the demand for goods is inelastic. Show Answer Correct Answer: C) Produces its output not at the lowest average total cost level. ← 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