This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A monopolist's demand curve will be horizontal at the market price. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 2. Which of the following industries have been deregulated in recent years? A) Low cost housing. B) Pharmaceuticals. C) Steel. D) Airlines. Show Answer Correct Answer: D) Airlines. 3. DeBeers has a monopoly in the diamond market because it A) They have a patert of the excavation process for diamonds. B) Is a natural monopily. C) Ihas been granted a government license. D) Bought up a significant portion of diamond reserves. Show Answer Correct Answer: D) Bought up a significant portion of diamond reserves. 4. Most large businesses are A) Corporations. B) Cooperatives. C) General partnerships. D) Sole proprietorships. Show Answer Correct Answer: A) Corporations. 5. A product that is the same no matter who produces it such at gasoline, notebook paper, milk, etc. Commodity's are sold in perfectly competitive markets. A) Good. B) Service. C) Commodity. D) Perfect Product. Show Answer Correct Answer: C) Commodity. 6. What level of government is most closely associated with zoning? A) Federal. B) State. C) Local. D) Interstate. Show Answer Correct Answer: C) Local. 7. Police protection is an example of a ..... good and apples are an example of a ..... good. A) Public; Private. B) Private; Public. C) Public; Public. D) Private; Private. Show Answer Correct Answer: A) Public; Private. 8. What are the advantages of a monopoly? A) Increased consumer choice, lower prices, and fair competition. B) Greater innovation, improved quality, and increased efficiency. C) More job opportunities, economic growth, and market stability. D) Ability to set higher prices, control the market, and enjoy higher profits without competition. Show Answer Correct Answer: D) Ability to set higher prices, control the market, and enjoy higher profits without competition. 9. This type of monopoly exists because it is efficient to allow one producer to be the only provider. Xcel energy being the sole provider of electricity in my neighborhood is an example of this. A) Franchise. B) Patent/copy right. C) Natural Monopoly. D) Resource Monopoly. Show Answer Correct Answer: C) Natural Monopoly. 10. Governmental Regulatory Agency in charge of Clean air and water A) FDA. B) EPA. C) FTC. D) SEC. Show Answer Correct Answer: B) EPA. 11. Oligopoly is a market structure with one very large firm A) True. B) False. Show Answer Correct Answer: B) False. 12. Which of the following is an example of a natural monopoly? A) Bananas. B) Public water. C) Grocery stores. D) Running shoes. Show Answer Correct Answer: B) Public water. 13. Decision making can be slow and complicated because so many levels of management are involved A) Sole proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 14. Which market structure is characterized by a large number of small firms producing identical products? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 15. Is the third market structure in question #2 incorporated or unincorporated? A) Incorporated. B) Unincorporated. Show Answer Correct Answer: A) Incorporated. 16. The thing businesses are aiming for. A) Profit. B) Revenue. C) Costs. D) Stars. Show Answer Correct Answer: A) Profit. 17. The real or imagined differences between competing products in the same industry. A) Nonprice competition. B) Product differentiation. C) Marketing differential. D) Oligopoly. Show Answer Correct Answer: B) Product differentiation. 18. A market in which there are a lot of firms that produce identical products. A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Perfect competition. 19. Mia, Aria, and Oliver are running lemonade stands in a perfectly competitive market. What is the long-run equilibrium position of their stands? A) Where their Marginal Cost (MC) equals Marginal Revenue (MR) equals Average Cost (AC) equals Average Revenue (AR). B) Where their Marginal Cost (MC) equals Marginal Revenue (MR) and Marginal Cost is rising. C) Where their Average Revenue (AR) equals Total Revenue (TR) and Quantity (Q) equals Price (P) times Quantity (Q). D) Where their Quantity (Q) equals Price (P) times Quantity (Q) and Quantity (Q) equals Price (P). Show Answer Correct Answer: A) Where their Marginal Cost (MC) equals Marginal Revenue (MR) equals Average Cost (AC) equals Average Revenue (AR). 20. What market structure if price is the key for competing with other firms? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) 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