This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 27 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. TRUE or FALSE-The Franchisee can benefit from using the brand name of the Franchise, as well as advertising and marketing A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. What is the market structure characterized by a single firm dominating the market? A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 3. A structure with a small number of businesses selling the same or similar products A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 4. What are the barriers to entry in an oligopoly market structure? A) The barriers to entry in an oligopoly market structure include high start-up costs, economies of scale, product differentiation, and control over essential resources. B) Limited competition and low economies of scale. C) No product differentiation and lack of control over essential resources. D) Low start-up costs and easy market entry. Show Answer Correct Answer: A) The barriers to entry in an oligopoly market structure include high start-up costs, economies of scale, product differentiation, and control over essential resources. 5. Exists when many sellers offer similar, but not standardized products A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 6. Colin's KTV is one of the many entertainment businesses in the country and he has a downward sloping demand curve. Which market structure is this? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: C) Monopolistic Competition. 7. The most recent antitrust legislation tried to stop ..... A) Trusts. B) Mergers. C) Price discrimination. D) Predatory Pricing. Show Answer Correct Answer: B) Mergers. 8. Yaz produces nails at a cost of $ 200 per ton. If he sells nails for $ 350 per ton, his producer surplus per ton is A) $ 200. B) $ 350. C) $ 150. D) $ 550. Show Answer Correct Answer: C) $ 150. 9. Which of the following characteristics does not match the characteristics of a monopolistic competition market? A) The number of producers is large and the size of the companies is small. B) Determination of maximum profit at the output level where MC = MR. C) Companies need advertising media. D) Companies are faced with a horizontal demand curve. E) The company as a price maker. Show Answer Correct Answer: A) The number of producers is large and the size of the companies is small. 10. What is not a characteristic of monopolistic competition? A) Many sellers. B) Easy market entry. C) Similar products sold within the same price range. D) Products are identical. Show Answer Correct Answer: D) Products are identical. 11. The shareholders may receive a part of the company's annual profit, if there is one, in the form of a dividend. A) True. B) False. Show Answer Correct Answer: A) True. 12. SSEMI3 b Which market structure, other than a monopoly, would have the highest barrier to entry? A) Oligopoly. B) Pure Competition. C) Monopolistic Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 13. A firm with market power engages in price discrimination to: A) Earn a higher profit. B) Increase consumer surplus. C) Decrease deadweight loss. D) Make its demand more elastic. Show Answer Correct Answer: A) Earn a higher profit. 14. What is the demand curve faced by a firm in monopolistic competition? A) Perfectly elastic. B) Perfectly inelastic. C) Downward sloping. D) Horizontal. Show Answer Correct Answer: C) Downward sloping. 15. Collusion among firms in an industry is most likely under conditions of A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 16. Average costs of production fall as output of the good or service increases. A) Economies of scale. B) Cartel. C) Collusion. D) Barriers to entry. Show Answer Correct Answer: A) Economies of scale. 17. A market structure in which only one seller sells a product for which there are no close substitutes A) Incentives. B) Monopoly. C) Interest Rates. D) None of above. Show Answer Correct Answer: B) Monopoly. 18. Why must stockholders pay taxes on dividends? A) Dividends always get charged capital gains tax. B) State taxes are mandatory. C) Profit from dividends is a form of income and stockholders must pay income tax on profits. D) Stock is a share representing owned portion of a corporation. Show Answer Correct Answer: C) Profit from dividends is a form of income and stockholders must pay income tax on profits. 19. What is the relationship between total revenue and marginal revenue in a monopoly market? A) They are always equal. B) They are always positive. C) They are always negative. D) They can be positive or negative. Show Answer Correct Answer: D) They can be positive or negative. 20. Monopolistic competition is ..... and a good example would be ..... A) When many firms compete with differentiated products, gasoline. B) When many firms compete with differentiated products, toothpaste. C) When many firms compete with unique products, electricity. D) None of above. Show Answer Correct Answer: B) When many firms compete with differentiated products, toothpaste. ← 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