This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 55 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A proportionate saving in costs gained by an increased level of production. A) Economies of scale. B) Warehouse markets. C) Increased utility. D) None of above. Show Answer Correct Answer: A) Economies of scale. 2. The US Gov't passed "antitrust" laws in an effort to eliminate the ability for businesses to ..... A) Create new techonologies. B) Enlarge profits. C) Become a monopoly. D) Compete for market share. Show Answer Correct Answer: C) Become a monopoly. 3. In perfect competition, are there any barriers to entry for new firms? A) Yes. B) Sometimes. C) Only for large firms. D) No tagsSSEMI3. Show Answer Correct Answer: D) No tagsSSEMI3. 4. Describe the four features of monopoly. A) Large number of firms, identical products, no market power, no barriers to entry or exit. B) Large number of firms, product differentiation, some market power, some barriers to entry or exit. C) Only a few firms, product differentiation, lots of market power, high barriers to entry or exit. D) Only one firm, no need for product differentiation, total market power, extremely high barriers to entry and exit. Show Answer Correct Answer: D) Only one firm, no need for product differentiation, total market power, extremely high barriers to entry and exit. 5. In which market structure do businesses have the least control over prices? A) Monopoly. B) Perfect Competition. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: B) Perfect Competition. 6. A monopoly is characterized by ..... A) A large number of firms, all of which have identical products. B) A large number of firms, all of which offer similar but not identical products. C) Market domination by only a few firms. D) The only firm in that industry and produces a specific product with no close substitutes. Show Answer Correct Answer: D) The only firm in that industry and produces a specific product with no close substitutes. 7. Nonprice competition typically focuses on four factors:physical characteristics, service, status and image, and A) Barriers to entry. B) Location. C) Price. D) Collusion. Show Answer Correct Answer: B) Location. 8. What is the defining characteristic of a monopolistic competition market structure? A) Differentiated products. B) Homogeneous products. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: A) Differentiated products. 9. Type of monopoly is based on lack of other available local competitors? A) Natural. B) Government. C) Technological. D) Geographic. Show Answer Correct Answer: D) Geographic. 10. A firm will shutdown if the price is: A) Below ATC, but above AVC. B) Above ATC. C) Below AVC. D) Equal to minimum ATC. E) None of the answers. Show Answer Correct Answer: C) Below AVC. 11. In a market, total surplus is A) Greater than the sum of consumer surplus plus producer surplus. B) Equal to the consumer's willingness to pay plus producer's cost. C) Equal to the total cost to sellers minus the total value to buyers. D) Equal to producer surplus plus consumer surplus. Show Answer Correct Answer: D) Equal to producer surplus plus consumer surplus. 12. ..... is a combination of more than three businesses that sell unrelated goods and services? A) Vertical Merger. B) Horizontal Merger. C) Multinational Merger. D) Conglomerate. Show Answer Correct Answer: D) Conglomerate. 13. Why is competition among restaurants in a big city an example of monopolistic competition? A) Starting a restaurant is expensive. B) Restaurants often go out of business. C) All restaurants serve food, and each restaurant is distinctive. D) All restaurants serve people, and one restaurant serves the most people. Show Answer Correct Answer: C) All restaurants serve food, and each restaurant is distinctive. 14. Complete control over prices, higher than prices should be, lower (shortage) and less efficient production, no competition, large profit! A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. 15. Monopoly has two key features, which are A) Barriers to entry and no close substitutes. B) Franchises and barriers to entry. C) Barriers to entry and close substitutes. D) Close substitutes and no barriers to entry. Show Answer Correct Answer: A) Barriers to entry and no close substitutes. 16. A market is classified as an oligopoly when A) Many firms produce the same product. B) Only one firm sells a product with no close substitutes. C) Many firms produce a slightly differentiated product. D) A few firms compete. E) No matter how many firms are in the market, a barrier blocks entry by other firms. Show Answer Correct Answer: D) A few firms compete. 17. Industry A) Manufacturing. B) Industry refers to the supply side of the market or all producers collectively. C) Business. D) Agriculture. Show Answer Correct Answer: B) Industry refers to the supply side of the market or all producers collectively. 18. Use the following headlines to answer the question below. Owned by shareholdersAccess to large amounts of funds for expansionDisadvantages:Double taxation The above headlines are all examples of A) Corporation. B) Monopoly. C) Sole proprietorship. D) Partnership. Show Answer Correct Answer: A) Corporation. 19. What is a barrier to entry? A) High Start up costs. B) Strong existing brand loyalty. C) High customer switching costs. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. What competition has distinct features and firms work with interdependent behavior? A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. ← 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