This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of competition only allows a few firms to operate in the market? A) Oligopoly. B) Pure Monopoly. C) Perfect Compeition. D) Monopolistic Competition. Show Answer Correct Answer: A) Oligopoly. 2. The FTC does not allow mergers. A) True. B) False. Show Answer Correct Answer: B) False. 3. The effort by sellers to agree to secretly set production levels or prices is called A) Cartel. B) Antitrust. C) Price leadership. D) Collusion. Show Answer Correct Answer: D) Collusion. 4. When the U.S. sells and ships goods to another country. A) Imports. B) Exports. C) Shipment. D) None of above. Show Answer Correct Answer: B) Exports. 5. The State of California filed suit against three pharmaceutical companies, Eli Lilly, Novo Nordisk, and Sanofi, which supply 90% of global insulin. Which market structure does this most closely resemble? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 6. Pure Competition A) Includes well informed buyers and sellers of exactly the same economic product. B) Market structure with many buyers and sellers, differentiated products, perfect information, and restricted entry and exit. C) Market structure with few buyers and sellers, differentiated products, imperfect information, and restricted entry and exit. D) Market structure with few buyers and sellers, homogeneous products, perfect information, and free entry and exit. Show Answer Correct Answer: A) Includes well informed buyers and sellers of exactly the same economic product. 7. Exists when there are economies of scale A) Natural monopoly. B) Government monopoly. C) Technological monopoly. D) Geographic monopoly. Show Answer Correct Answer: A) Natural monopoly. 8. Predatory pricing A) Sets the market price below cost levels for the short term to drive out competitors. B) Sets the market price above cost levels for the short term to drive out competitors. C) Sets the market price below cost levels for the long term to drive out competitors. D) Sets the market price above cost levels for the long term to drive out competitors. Show Answer Correct Answer: A) Sets the market price below cost levels for the short term to drive out competitors. 9. Conspiring among business to set the prices of competing production A) Pricing fixing. B) Trust. C) Market share. D) Oligopoly. Show Answer Correct Answer: A) Pricing fixing. 10. SSEMI3 b Perfect competition is sometimes called "Pure" competition because: A) Products are identical and price is purely set by the market. B) A government agency sets price floors for all products in that market. C) A few large firms dominate the market with their slightly differentiated products. D) There is only one seller, so the competition is perfect. Show Answer Correct Answer: A) Products are identical and price is purely set by the market. 11. Strong interdependence exists in this market (meaning what one firm does the others will do as well): A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 12. What is market power and how does it affect competition? A) Market power is the ability of a firm to influence the market price of a good or service, and it affects competition by allowing the firm to set higher prices and restrict output. B) Market power is the ability of a firm to lower the market price of a good or service, and it affects competition by increasing consumer choices. C) Market power is the ability of a firm to collaborate with other firms to set market prices, and it affects competition by promoting lower prices for consumers. D) Market power is the ability of a firm to have no influence on the market price of a good or service, and it affects competition by promoting fair competition. Show Answer Correct Answer: A) Market power is the ability of a firm to influence the market price of a good or service, and it affects competition by allowing the firm to set higher prices and restrict output. 13. Rebels in Angola had this type of monopoly over diamonds because they controlled the mines A) Franchise. B) Patent/Copy Right. C) Natural Monopoly. D) Resource monopoly. Show Answer Correct Answer: D) Resource monopoly. 14. Which of the following is not an advantage of a sole proprietorship? A) Easy to form. B) Taxed only once. C) You retain all of the profits. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 15. What type of monopoly is based on ownership of a manufacturing method, process, or scientific advancement? A) Technological monopoly. B) Geographic monopoly. C) Government monopoly. D) Natural monopoly. Show Answer Correct Answer: A) Technological monopoly. 16. SSEMI3 b Comcast and Wow control basically all of the market share for cable internet in Martinez, GA. This is an example of a(n): A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competiton. Show Answer Correct Answer: B) Oligopoly. 17. Price movements at Disequilibrium when there is a shortage ..... ? A) Expansion along Demand, Contraction along Supply. B) Expansion along Demand & Supply. C) Contraction along Demand & Supply. D) Contraction along Demand, Expansion along Supply. Show Answer Correct Answer: A) Expansion along Demand, Contraction along Supply. 18. Antitrust laws promote competition. A) True. B) False. Show Answer Correct Answer: A) True. 19. Ideal market structure A) Perfect Competition. B) Nonprice Competition. C) Predatory pricing. D) Product Differentiation. Show Answer Correct Answer: A) Perfect Competition. 20. Under perfect competition, A) Products are similar but not identical. B) Numerous restrictions prevent firms from entering the market. C) No seller can sell a product above the prevailing market price. D) A single seller can affect price. Show Answer Correct Answer: C) No seller can sell a product above the prevailing market price. ← 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