This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 54 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is market power? A) The ability of a firm or a group of firms to minimize costs in a market. B) The ability of a firm or a group of firms to collaborate with competitors in a market. C) The ability of a firm or a group of firms to attract customers in a market. D) The ability of a firm or a group of firms to influence the price and output in a market. Show Answer Correct Answer: D) The ability of a firm or a group of firms to influence the price and output in a market. 2. What is the driving force in perfect competition A) Prices. B) Collusion. C) Differentiation. D) Products. Show Answer Correct Answer: A) Prices. 3. Which market structure has no barriers to entry or exit and all firms are price takers? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 4. Government sometimes intervenes with price controls. What the two forms of price controls? A) Surplus and Shortage. B) Equilibrium and Elasticity. C) Price Floors and Price Ceilings. D) Land and Taxes. Show Answer Correct Answer: C) Price Floors and Price Ceilings. 5. In which market structure is there the MOST competition? (Think agricultural products) A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 6. Market structure where there are many sellers with similar products. They advertise and compete to sell their products, and there are low barriers to entry. A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect competition. Show Answer Correct Answer: C) Monopolistic Competition. 7. The Demand Curve has moved left. Where is the new equilibrium price and quantity? A) Higher, higher. B) Lower, lower. C) Lower, higher. D) Higher, lower. Show Answer Correct Answer: B) Lower, lower. 8. Which market structure has a large number of producers with identical products? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 9. If the price is in between ATC and AVC, a perfectly competitive firm will: A) Make a loss in the short run. B) Make a profit in the short run. C) Shutdown immediately. D) Achieve productive efficiency. E) Not enough information is given. Show Answer Correct Answer: A) Make a loss in the short run. 10. What is the equilibrium price for hot dogs? A) $ 2. B) $ 3. C) $ 4.50. D) $ 5. Show Answer Correct Answer: B) $ 3. 11. Under pure competition, products are A) Always cheap. B) Differentiated. C) Accurately priced. D) Identical. Show Answer Correct Answer: D) Identical. 12. Businesses conspiring among themselves to set the prices of competing products at a higher level A) Price fixing. B) Trust. C) Market sharing. D) Oligopoly. Show Answer Correct Answer: A) Price fixing. 13. True or False:Firms in monopolistic competition must take the reaction of other firms into account when deciding on price A) True. B) False. Show Answer Correct Answer: B) False. 14. What does limited life mean? A) The business lives or dies with the owner(s). B) The business can only stay open for a limited amount of time. C) The business will only be popular for so long. D) There is a limited amount of health remaining. Show Answer Correct Answer: A) The business lives or dies with the owner(s). 15. All of the following are reasons competition are desirable, EXCEPT A) It brings items to an equilibrium price. B) Producers stop innovating. C) Producers try to differentiate their products to meet the desires of consumers. D) Consumers have choice and can find the best use of the scarse resource of money. Show Answer Correct Answer: B) Producers stop innovating. 16. The breakfast cereal industry would be an example of ..... A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 17. This represents part ownership in a corporation A) A share of stock. B) An article of partnership. C) A bucket full of money. D) None of the above. Show Answer Correct Answer: A) A share of stock. 18. Which item being sold would be considered perfect competition A) Bananas. B) Shoes. C) Cars. D) Cereal. Show Answer Correct Answer: A) Bananas. 19. What is the defining characteristic of a perfect competition market structure? A) A large number of firms and consumers. B) A single producer of a particular commodity. C) Firms have perfect knowledge of the market. D) Consumers are price takers. Show Answer Correct Answer: A) A large number of firms and consumers. 20. You are supposed to go to the movies with your friends tonight. Earlier today, you bought a pair of shorts with your last $ 30. What is the opportunity cost? A) The difference between how much a movie ticket costs and how much the shorts cost. B) The $ 30 that you gave the paid for the shorts. C) The movie with your friends that you now cannot afford. D) The joy of knowing you are the first among your friends to have this pair of shorts. Show Answer Correct Answer: C) The movie with your friends that you now cannot afford. ← 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