This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine Oliver, Noah, and Olivia are running lemonade stands in a neighborhood (a Perfectly Competitive Market). What happens when new kids start their own lemonade stands in the same neighborhood? A) All of the above. B) Oliver, Noah, and Olivia's customer base (demand) decreases. C) The price of lemonade in the neighborhood decreases. D) The total number of lemonade stands (market supply) in the neighborhood increases. Show Answer Correct Answer: A) All of the above. 2. What is the main feature of an oligopoly market? A) Few large firms dominating the market. B) No competition in the market. C) One firm dominating the market. D) Many small firms dominating the market. Show Answer Correct Answer: A) Few large firms dominating the market. 3. State where wildfires are ravaging communities. A) California. B) Pennsylvania. C) Virginia. D) Scotland. Show Answer Correct Answer: A) California. 4. Forms when barriers prevent firms from entering a market that has a single supplier A) Monopoly. B) Government Monopoly. C) Natural Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 5. When a lower price is the main reason for customers to buy from one business over another A) Price war. B) Price competition. C) Nonprice competition. D) All of these answers. Show Answer Correct Answer: B) Price competition. 6. Example:minimum wage A) Price ceiling. B) Price floor. Show Answer Correct Answer: B) Price floor. 7. An advantage of better service and convenient store hours A) Price competition. B) Customer service. C) Nonprice competition. D) Pure competition. Show Answer Correct Answer: C) Nonprice competition. 8. Which type of monopoly is allowed to exist because they keep the average cost per customer low? A) Natural Monopoly. B) Geographic Monopoly. C) Government Monopoly. D) Technological Monopoly. Show Answer Correct Answer: A) Natural Monopoly. 9. The term used for costs that change with the number of output A) Fixed Cost. B) Average Cost. C) Variable Cost. D) Marginal Cost. Show Answer Correct Answer: C) Variable Cost. 10. Coke and Pepsi are part of what market structure? A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: B) Oligopoly. 11. Which of the following is most likely an example of a monopoly? A) A Starbucks across from Dunkin Donuts. B) A gas station in the country by itself. C) 3 fast food restaurants all on the same street. D) A Kroger 4 miles away from a Walmart. Show Answer Correct Answer: B) A gas station in the country by itself. 12. What is the market structure of Pepsi and Coke? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 13. In a Perfect Competition, products are basically ..... A) Differentiated. B) Identical. C) Similar. D) Opposite. Show Answer Correct Answer: B) Identical. 14. Which of the following applies to both monopolistic competition and perfect competition? A) Differentiated products. B) Long-run zero economic profits. C) Price setter. D) Productive inefficiency. Show Answer Correct Answer: B) Long-run zero economic profits. 15. What IS an advantage of a sole proprietorship? A) Shares can be sold to raise capital (money). B) Decisions are responsibilities can be shared. C) The owner has independence. D) It is hard to start up. Show Answer Correct Answer: C) The owner has independence. 16. Which of the following is not a type of imperfect competition A) Monopolistic. B) Oligopoly. C) Monopoly. D) Pure. Show Answer Correct Answer: D) Pure. 17. AN EXAMPLE OF A GOVERNMENT MONOPOLY A) FIESTA TEXAS. B) DISNEYLAND. C) (USPS) UNITED STATES POSTAL SERVICE. D) BEN AND JERRY'S. Show Answer Correct Answer: C) (USPS) UNITED STATES POSTAL SERVICE. 18. The difference between a firm's total revenue and its total opportunity cost is the firm's A) Marginal revenue. B) Economic profit. C) Marginal profit. D) Normal profit. Show Answer Correct Answer: B) Economic profit. 19. What company has the lowest percentage of business in the U.S? A) Sole proprietorship. B) Corporations. C) Multinationals. D) Partnerships. Show Answer Correct Answer: D) Partnerships. 20. What are the conditions for perfect competition? A) Only a few buyers and sellers. B) 1. Many buyers and sellers2. Identical products3. Informed buyers and sellers4. Free market entry and exit. Show Answer Correct Answer: B) 1. Many buyers and sellers2. Identical products3. Informed buyers and sellers4. Free market entry and exit. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books