This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 52 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The product price of a firm in a perfectly competitive industry is A) Never more than $ 100 each. B) Always dependent on government pricing laws. C) Always whatever every other firm's price is. D) Never really a factor in a consumer's buying decision. Show Answer Correct Answer: C) Always whatever every other firm's price is. 2. Which of the following is a condition of a perfect/pure competition? A) There are few sellers who are perfect. B) The products have to be very high quality. C) There are perfect rules that are enforced by the government. D) Products must be exactly the same. Show Answer Correct Answer: D) Products must be exactly the same. 3. Under perfect competition what sets the equilibrium price in the market? A) Nonprice competition. B) Supply and demand. C) The government. D) A monopoly. Show Answer Correct Answer: B) Supply and demand. 4. In return for a fee to a franchiser, a business owner receives the right A) To form a partnership with the franchiser. B) To sell the franchiser's goods and services. C) To run the business in the way he or she wishes. D) To sell the franchiser's stocks and bonds. Show Answer Correct Answer: B) To sell the franchiser's goods and services. 5. Which of the following is most likely an example of a fixed cost in making pizzas? A) Pepperoni. B) Manager's salary. C) Employee wages. D) Pizza dough. Show Answer Correct Answer: B) Manager's salary. 6. Grace, Zoe, and Benjamin are starting their own businesses. Grace is starting a monopoly, Zoe is starting an oligopoly, and Benjamin is starting a business with differentiated products. Which market structure is Benjamin's business characterized by? A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Pure Competition. Show Answer Correct Answer: C) Monopolistic Competition. 7. SSEMI3 Which business organization has the disadvantage of unlimited liability for a single individual? A) Sole Proprietorship. B) Corporation. C) Partnership. D) Oligopoly. Show Answer Correct Answer: A) Sole Proprietorship. 8. If Google and McDonalds were to merge together, what type of merger would this be? A) Vertical. B) Horizonal. Show Answer Correct Answer: A) Vertical. 9. Most are illegal due to the Clayton and Sherman Antitrust acts A) Perfect Competition. B) Monopolistic comeptition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 10. In monopolistic competition if firms are making abnormal profit other firms will enter and: A) The marginal cost of the firm will shift outwards. B) The demand curve for the firm will shift inwards. C) The average cost of the firm will shift downwards. D) The average variable cost of the firm will increase. Show Answer Correct Answer: B) The demand curve for the firm will shift inwards. 11. Which business organization type has double taxation? A) Corporation. B) Sole Proprietorship. C) Partnership. D) Non-profit. Show Answer Correct Answer: A) Corporation. 12. In which economic system do both businesses and the government answer the three economic questions? A) Command Economy. B) Market Economy. C) Mixed Economy. D) Traditional Economy. Show Answer Correct Answer: C) Mixed Economy. 13. An agreement among members of an oligopoly to set prices and production levels is called A) Price leadership. B) Competition. C) Collusion. D) Imperfect monopoly. Show Answer Correct Answer: C) Collusion. 14. What is meant by Barrier to entry? A) New firms are welcome into the market. B) It is easy to get into the market. C) Any factor that makes it difficult for a new firm to enter a market. D) None of above. Show Answer Correct Answer: C) Any factor that makes it difficult for a new firm to enter a market. 15. When trying to start a business and enter a certain product market, there are fees and licenses to apply for and equipment to purchase. These are all ..... A) Consumer products. B) Factors of production. C) Barriers to entry. D) Supply & demand. Show Answer Correct Answer: C) Barriers to entry. 16. Economists believe that the downside of a minimum wage is A) A shortage. B) Unemployment. C) Not enough workers. D) Wages will be too low. Show Answer Correct Answer: B) Unemployment. 17. What is the relationship between price and quantity demanded in a monopolistic competition market? A) Random. B) No relationship. C) Direct or positive. D) Inverse or negative. Show Answer Correct Answer: D) Inverse or negative. 18. The high cost of starting a business could be an example of ..... A) Barriers to entry. B) Variety of goods. C) Advertising. D) Control over prices. Show Answer Correct Answer: A) Barriers to entry. 19. In which market structure do firms have some control over the price of their products due to product differentiation? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 20. Polaroid has a patent on instant cameral, this patent means that A) No other company can make instant cameras. B) No other company can make cameras. C) Other companies can make cameras but not under the name polaroid. D) Other companies can make instant cameras but must use a different name. Show Answer Correct Answer: A) No other company can make instant cameras. ← 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