This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. True or False:Countries try lower taxes on multi-national companies with the hopes of having them build business in their land. A) True. B) False. Show Answer Correct Answer: A) True. 2. An ..... is a market structure characterized by only a few sellers of a product who dominate the market. (Examples:breakfast cereals and natural gas) A) Cartel. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 3. Which type of monopoly is allowed to exist because they are the only company in an area that is willing and capable of producing? A) Natural Monopoly. B) Geographic Monopoly. C) Government Monopoly. D) Technological Monopoly. Show Answer Correct Answer: B) Geographic Monopoly. 4. When consumers are divided into groups and charged differently it is called A) Franchise. B) Monopoly. C) Price discrimination. D) Making a profit. Show Answer Correct Answer: C) Price discrimination. 5. NPF-Increase in personal tax rates. What curve is impacted in the TV market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: A) Demand Left. 6. In this business organization, a major advantage is the product is well known and has national advertising. A) Corporation. B) Partnership. C) Franchise. D) Sole proprietorship. Show Answer Correct Answer: C) Franchise. 7. Why do cartels NOT last? A) Illegal. B) Members have to keep agreement. C) They lose money. D) Products are competitive. Show Answer Correct Answer: B) Members have to keep agreement. 8. Explain the concept of interdependence in an oligopoly market. A) Interdependence means each firm operates independently without any impact on other firms. B) Interdependence is the concept of firms in a market not being affected by the actions of other firms. C) Interdependence refers to the situation where firms collude to fix prices and output. D) Interdependence refers to the situation where the actions of one firm directly affect the performance and decisions of other firms in the market. Show Answer Correct Answer: D) Interdependence refers to the situation where the actions of one firm directly affect the performance and decisions of other firms in the market. 9. How much influence one company have over the price of the product in the market is called what? A) Price Taker. B) Market Control. C) Degree of Influence. D) Making profit. Show Answer Correct Answer: B) Market Control. 10. What is the difference between perfect competition and monopolistic competition? A) Perfect competition involves differentiated products and no control over price, while monopolistic competition involves identical products and some control over price. B) Perfect competition involves differentiated products and some control over price, while monopolistic competition involves identical products and no control over price. C) Perfect competition involves identical products and some control over price, while monopolistic competition involves differentiated products and no control over price. D) The main difference is that perfect competition involves identical products and no control over price, while monopolistic competition involves differentiated products and some control over price. tagsSSEMI3. Show Answer Correct Answer: D) The main difference is that perfect competition involves identical products and no control over price, while monopolistic competition involves differentiated products and some control over price. tagsSSEMI3. 11. Advertising and innovation are non-price competition strategies most common in perfect competition markets. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. Trent is opening a shoe store. He needs money to rent a retail space, buy shoes to stock in the store, pay employees, and make advertisements. These are examples of ..... A) Barriers to entry. B) Start-up costs. C) Corporate taxes. D) Opportunity costs. Show Answer Correct Answer: B) Start-up costs. 13. A government issued right to operate a business A) License. B) Copyright. C) Patent. D) Registered trademark. Show Answer Correct Answer: A) License. 14. A condition of a Monopolistic Competitive market is that products are similar but not identical. A) True. B) False. C) It depends on the product. D) None of above. Show Answer Correct Answer: A) True. 15. In the short run, when MONOPOLISTIC COMPETITON experiences economic profit, A) Existing firms in the monopolistic competition will exit. B) New firms will enter the market. Show Answer Correct Answer: B) New firms will enter the market. 16. SSEMI3 If a business fails to meet its financial obligations, the owner (or owners) are personally responsible for those debts. A) Unlimited liability. B) Limited liability. C) Contract. D) Articles of partnership. Show Answer Correct Answer: A) Unlimited liability. 17. How might an oligopoly control prices? A) Collusion. B) Price leadership. C) Nonprice competition. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Which type of market structure is the corn industry? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 19. Extra cost of producing one more unit A) Marginal cost. B) Variable Cost. C) Fixed Cost. D) Average Cost. Show Answer Correct Answer: A) Marginal cost. 20. Monopoly is characterised by A) Only one firm. No substitutes. The firm is a price maker. B) Only one firm. No substitutes. The firm is a price taker. Show Answer Correct Answer: A) Only one firm. No substitutes. The firm is a price maker. ← PreviousNext →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 1Market Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books