This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 39 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Federal Trade Commission Act A) Federal law that established the Federal Trade Commission (FTC) and regulates unfair methods of competition and deceptive practices. B) Federal law that established the Federal Trade Commission (FTC) and regulates interstate commerce. C) Federal law that established the Federal Trade Commission (FTC) and enforces antitrust laws. D) The FTC has the power to order a company to cease and desist unfair business practices. Show Answer Correct Answer: D) The FTC has the power to order a company to cease and desist unfair business practices. 2. Pepsi, Coca Cola A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 3. Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of $ 8. What would be the firm's TOTAL revenue if it instead produced and sold 4 units of output? A) $ 2. B) $ 8. C) $ 32. D) $ 64. Show Answer Correct Answer: C) $ 32. 4. Why are wants insatiable? A) They are endless. B) Only services can satisfy them. C) They are different from needs. D) Resources are unlimited. Show Answer Correct Answer: A) They are endless. 5. Explain the concept of price taker in perfect competition. A) A firm that has no influence over the market price and must accept the price set by the market. B) A firm that can set its own price in the market. C) A firm that has complete control over the market price. D) A firm that can easily manipulate the market price. Show Answer Correct Answer: A) A firm that has no influence over the market price and must accept the price set by the market. 6. Economic profit is calculated by taking: A) Total Revenue-Explicit Costs. B) Total Revenue-(Explicit + Implicit Costs). C) Explicit Costs * Total Revenue. D) Total Revenue-Fixed Costs. Show Answer Correct Answer: B) Total Revenue-(Explicit + Implicit Costs). 7. Are allowed if the one sellers has a patent, is the government, or is not purposefully blocking competition A) Perfect Competition. B) Monopolistic comeptition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 8. Which markets compete in non-price competition? A) Monopolistic competition and oligopoly. B) Monopoly and monopolistic competition. C) Oligopoly and perfect competition. D) Perfect competition and monopolistic competition. Show Answer Correct Answer: A) Monopolistic competition and oligopoly. 9. Beauty salons and clothing stores are likely A) Monopolies. B) Monopolistic Competition. C) Perfectly Competitive. D) Oligopolies. Show Answer Correct Answer: B) Monopolistic Competition. 10. How does an oligopoly control price? A) Through product differentiation. B) By being the only producer of a good. C) By working together to set prices. D) It has no control over price. Show Answer Correct Answer: C) By working together to set prices. 11. A market in which producers sell similar products, but not identical? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic competition. 12. All sellers in the perfect competition are ..... sellers. A) Medium. B) Large. C) Small. D) Extra large. Show Answer Correct Answer: C) Small. 13. In a monopolistic market, how much market power does the producer have? A) Complete control. B) No market power. C) Limited control. D) Shared control. Show Answer Correct Answer: A) Complete control. 14. Blueberry producers in Idaho are perfectly competitive, the market demand curve for blueberries is A) Nonexistent. B) Downward sloping. C) Horizontal. D) Upward sloping. Show Answer Correct Answer: B) Downward sloping. 15. In this market structure there is only one seller with a unique product A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 16. Which type of market structure is being described in the following quote? "To make matters worse, health care consolidation has led to the absence of any choice at all for consumers. Another study by Harvard University on hospital markets found that between 2007-2017, 11.2 million Americans were served by just a single hospital system." A) Sole Proprietorship. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 17. Benefit of Perfect Competition A) Any Producer can enter market. B) Competition Lowers Prices. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 18. Barriers to entry = A) Perfect competition. B) Make it difficult for new firms to enter the market. C) Factors of production. D) None of above. Show Answer Correct Answer: B) Make it difficult for new firms to enter the market. 19. In an oligopoly, when a few producers join forces publicly to control pricing and production levels (btw:it's illegal in the US) A) COLLUSION. B) CARTEL. C) TRUST. D) FEDERATION. Show Answer Correct Answer: B) CARTEL. 20. Collusion is legal in the U.S.? A) True. B) False. Show Answer Correct Answer: B) False. ← 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