This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If an industry is basically impossible for new firms to enter because of government regulation, it is probably which market structure? A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 2. Oligopoly is a market which has A) Few large firms. B) Huge number of sellers. C) Limited product to be sold. D) Firms with huge usp. Show Answer Correct Answer: A) Few large firms. 3. Which of the following statements about monopolistically competitive markets is false? A) Firms in a monopolistically competitive market compete with each other in ways besides price (they engage in non-price competition). B) Firms in a monopolistically competitive market often attempt to differentiate their products from their competitors with unique product attributes. C) Monopolistically competitive firms often advertise to increase demand for their products. D) Monopolistically competitive markets are similar to perfectly competitive markets in that there are many sellers in both market structures. E) Firms in a monopolistically competitive market are price takers and have no choice but to charge the same price as their competitors. Show Answer Correct Answer: E) Firms in a monopolistically competitive market are price takers and have no choice but to charge the same price as their competitors. 4. Brand loyalty describes the willingness of consumers to buy a good at a higher price than the price of its close substitutes A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 5. A market with very few sellers and plenty buyers is called ..... A) Monopoly. B) Duopoly. C) Oligopoly. D) Monopsons. Show Answer Correct Answer: C) Oligopoly. 6. A single-price monopolist is currently producing in the inelastic portion of its market demand curve. In order to maximize profits, the monopolist should change the price and quantity in which of the following ways? A) P=Increase; Q=Increase. B) P=Increase; Q=Decrease. C) P=Decrease; Q=Decrease. D) P=No Change; Q=Increase. Show Answer Correct Answer: B) P=Increase; Q=Decrease. 7. In which market structure do firm's not use the marginal principle to maximize profit? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 8. This is the easiest market structure to enter because of low barriers to entry and the number of producers. A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect Competition. 9. What is the market supply curve for a monopoly firm? A) No supply curve. B) Downward sloping. C) Horizontal. D) Upward sloping. Show Answer Correct Answer: D) Upward sloping. 10. Price takers are individuals in a market who: A) Select a price from a wide range of alternatives. B) Select the lowest price available in a competitive market. C) Select the average of prices available in a competitive market. D) Have no ability to affect the price of a good in a market. Show Answer Correct Answer: D) Have no ability to affect the price of a good in a market. 11. In the circular flow model, which of the following flows in the opposite direction from the flow of factors of production and goods/services? A) Finished goods and services. B) Wages, rent, interest, and profit. C) Transfer payments from government. D) Firm's profit incentives. Show Answer Correct Answer: B) Wages, rent, interest, and profit. 12. A disadvantage to a corporation is that A) Decision making is no longer controlled by the original entrepreneur. B) Bond holder have first claim to a corporation's profits. C) Dividends are taxed twice, once as a corporate income and once as personal income. D) Stockholders demand and get large dividends if any profits are made. Show Answer Correct Answer: C) Dividends are taxed twice, once as a corporate income and once as personal income. 13. Buyers have few choices when it comes down to satellite TV and internet providers. Basically, the producers are pretty much the same. This is an example of A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 14. Laws that encourage competition in the marketplace A) Antitrust laws. B) Patent laws. C) Anti-collusion laws. D) Reduced impact fees. Show Answer Correct Answer: A) Antitrust laws. 15. There are four ways to compete without changing the price of your product. Which of these is NOT a way to participate in the non-price competition? A) Yearly sales. B) Physical characteristics. C) Advertising. D) Location. Show Answer Correct Answer: A) Yearly sales. 16. What is a corporation? A) A government agency. B) A legal entity that is separate and distinct from its owners. C) A non-profit organization. D) A type of partnership. tagsSSEMI3. Show Answer Correct Answer: B) A legal entity that is separate and distinct from its owners. 17. Selling a product below cost to drive competitors out of the market A) Predatory pricing. B) Price fixing. C) Collusion. D) Price adjusting. Show Answer Correct Answer: A) Predatory pricing. 18. The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise and lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 19. A market structure in which many producers supply an identical product. (This is the most efficient structure) A) Market Failure. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Perfect Competition. 20. Which market structure do we encounter most often in our daily lives? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: A) Monopolistic 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