Market Structures Quiz 43 (20 MCQs)

Quiz Instructions

Select an option to see the correct answer instantly.

1. Firms in an oligopoly

Correct Answer: B) Are interdependent.

2. One of the ways a corporation can raise money is by

Correct Answer: A) Selling stock on the stock market.

3. Monopoly

Correct Answer: A) A monopoly exists when the producer of a products has no close substitutes.

4. When businesses charge different prices to customers for the same service/product, it is called:

Correct Answer: C) Price discrimination.

5. Cartel is a group of firms that collude to produce the monopoly output and sell at the monopoly price.

Correct Answer: A) True.

6. In California, blueberry growers are price takers. The reason they are price takers is because there are ..... blueberry growers in this area

Correct Answer: C) Many.

7. Which market structure has high barriers to entry, firms engage in strategic behavior, and a small number of large firms dominate the market?

Correct Answer: C) Oligopoly.

8. In which market are firm's products always exactly the same (otherwise known as homogeneous)?

Correct Answer: D) Perfect competition.

9. If a general partnership fails, who is responsible for the debts?

Correct Answer: B) All of the partners.

10. If a perfectly competitive firm is currently producing a level of output at which marginal revenue (MR) exceeds marginal cost (MC), then .....

Correct Answer: A) A one-unit increase in output will increase the firm's profit.

11. Huge monopolies dominated the American marketplace in the late 1800s. This lead the US Gov't to set ( ..... ) laws to break them up.

Correct Answer: B) Anti-trust.

12. If a town has only one gas station then the market for gas in that town is in which market structure?

Correct Answer: D) Monopoly.

13. If a market has low competition, usually start-up costs are

Correct Answer: A) High.

14. In a monopoly, the firm is the industry

Correct Answer: A) True.

15. What kind of market runs most efficiently when one large firms supplies all of the output?

Correct Answer: B) Natural monopoly.

16. Government requirements that promote transparency are an attempt to prevent market failures caused by .....

Correct Answer: D) Insufficient information.

17. Where supply and demand come together.

Correct Answer: A) Equilibrium.

18. A major producer of automobiles buys a large rental car company.

Correct Answer: B) Vertical.

19. The market which offers a homogenous product:

Correct Answer: A) Perfect competition.

20. Limited liability corporation=

Correct Answer: A) Stockholders can only loose what they invested only.