This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 46 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of a natural monopoly? Text to speech A) The water system that serves the greater Boston metropolitan area. B) Millionaire John D. Rockefeller's Standard Oil Company. C) He only sandstone quarry in Menomonie, Wisconsin. D) Author J.K. Rowling's copyright for her Harry Potter novels. Show Answer Correct Answer: A) The water system that serves the greater Boston metropolitan area. 2. Marginal costs are based on changes for the firm's ..... A) Average fixed costs. B) Variable costs. C) Market structure. D) Marginal revenue. Show Answer Correct Answer: B) Variable costs. 3. Suppose when a monopolist produces 50 units its average revenue is $ 8 per unit, its marginal revenue is $ 4 per unit, its marginal cost is $ 4 per unit, and its average total cost is $ 3 per unit. What can we conclude about the monopolist? A) The monopolist is currently maximizing its profits, and its total profits are $ 200. B) The monopolist is currently maximizing its profits, and its total profits are $ 250. C) The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit. D) The monopolist not currently maximizing its profits; it should produce fewer units and charge a higher price to maximize profit. Show Answer Correct Answer: B) The monopolist is currently maximizing its profits, and its total profits are $ 250. 4. An example of a monopoly A) Utilities. B) Auto industry. C) Airlines. D) None of above. Show Answer Correct Answer: A) Utilities. 5. What does "positive externality" mean? A) It is the cost that is involved in the production & consumption of a good or service. B) It is the benefit enjoyed by a third party from the consumption of a good or service. C) It is the benefit that a person derives from consuming a certain good or service. D) It is the benefit that merit goods bring. Show Answer Correct Answer: B) It is the benefit enjoyed by a third party from the consumption of a good or service. 6. Market where many producers offer similar, but not identical goods or services. A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 7. ..... are associations of individuals or companies that perform business functions for their members. A) S Corporations. B) Government Owned Corporations. C) Not for Profit. D) Cooperatives. Show Answer Correct Answer: D) Cooperatives. 8. ..... refers to a market structure characterized by a large number of buyers and sellers of products that are similar to one another that can be differentiated by brand, quality, etc. (Examples:restaurants and retail clothing sellers) A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopsons. Show Answer Correct Answer: B) Monopolistic competition. 9. Which is the ideal market structure A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: C) Perfect competition. 10. Which market structure has a small number of producers with a large amount of control? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 11. What are the main characteristics of oligopoly? A) Few firms, independent, high barriers of entry. B) Few firms, interdependent, high barriers of entry. Show Answer Correct Answer: B) Few firms, interdependent, high barriers of entry. 12. Which market structure has a single firm or entity as the sole seller or producer of a particular product or service? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 13. SSEMI3 b WOW and Comcast, the only two internet service providers in Evans, meet secretly to decide to set prices very high. This is an example of A) Collusion. B) A price war. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: A) Collusion. 14. Which of the following companies were one of the first to be regulated by the government? A) Electric companies. B) Transportation companies. C) Phone companies. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 15. Illegal combination of corporations or companies organized to suppress competition A) Trust. B) Collusion. C) Corruption. D) Cartel. Show Answer Correct Answer: A) Trust. 16. Market structure where alternatives for its products are limited. A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 17. A business that cannot set the prices itself, but accepts the market price A) Price maker. B) Price taker. C) Monopoly. D) Cartel. Show Answer Correct Answer: B) Price taker. 18. The market type known as perfect competition is ..... A) Highly competitive and firms find it impossible to earn an economic profit in the long run. B) Marked by firms continuously trying to change their products so that consumers prefer their product to their competitors' products. C) Dominated by fierce advertising campaigns. D) None of above. Show Answer Correct Answer: A) Highly competitive and firms find it impossible to earn an economic profit in the long run. 19. If an industry is relatively cheap for new firms to enter, but consumers do not care about quality differences it is probably which market structure? A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Perfect competition. 20. Which of the following is the most competitive market structure? A) Pure oligopoly. B) Perfect competition. C) Differentiated oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) 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