This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 60 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In which circumstance will a firm cease production in the short run? A) It makes a profit that is less than its total variable costs. B) It makes a profit that is less than its total fixed costs. C) Its average revenue is less than its average cost. D) Its average revenue is less than its average variable cost. Show Answer Correct Answer: D) Its average revenue is less than its average variable cost. 2. Paul goes to the clothing store to buy a new t-shirt, for which he is willing to pay $ 10. He finds the perfect t-shirt that costs $ 10. At the register he learns it is 50% off. Paul's consumer surplus is: A) $ 0. B) $ 5. C) $ 10. D) $ 15. Show Answer Correct Answer: B) $ 5. 3. What is a natural monopoly? A) A market that runs more efficient with only a few firms. B) A market that runs more efficiently with as many firms as possible. C) A market that runs more efficiently with only one firm. D) Any market that deals with natural resources and where have many firms is still efficient. Show Answer Correct Answer: C) A market that runs more efficiently with only one firm. 4. Which market structure has the least competition in the marketplace? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 5. Samuel, Emma, and Grace are discussing market power in their economics class. Can you help them understand what market power is? A) The ability of a firm or a group of firms to influence the price and output in a market. B) The ability of a firm or a group of firms to control the supply and demand in a market. C) The ability of a firm or a group of firms to collaborate and set prices in a market. D) The ability of a firm or a group of firms to maximize profits in a market. Show Answer Correct Answer: A) The ability of a firm or a group of firms to influence the price and output in a market. 6. Clothing would most closely be associated with which of the following markets? A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic Competition. 7. This market structure is when on industry is controlled by a handful of companies A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: B) Oligopoly. 8. Market in which a single seller exercises exclusive or nearly exclusive control over a particular good or service. A) Oligopoly. B) Natural Monopoly. C) Monopoly. D) Natural Monopoly. Show Answer Correct Answer: C) Monopoly. 9. When a monopoly participates in "predatory prices" prices will go A) Down. B) Up. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Down. 10. In which market structure is each firm's demand perfectly elastic? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 11. What is the equation for total revenue in a monopoly market? A) TR = p * q. B) TR = p + q. C) TR = p / q. D) TR = p-q. Show Answer Correct Answer: A) TR = p * q. 12. A product that consumers see as the same, regardless of the producer A) Differentiated product. B) Similar product. C) Standardized product. D) None of above. Show Answer Correct Answer: C) Standardized product. 13. Which of the following factors contribute to market failure? A) Adequate competition. B) Knowledge of prices and opportunities. C) Mobility of resources. D) Inadequate competition. Show Answer Correct Answer: D) Inadequate competition. 14. A factor that makes it difficult for new firms to enter a market A) Perfect competition. B) Barriers to entry. C) Start up costs. D) Imperfect competition. Show Answer Correct Answer: B) Barriers to entry. 15. What is the law in a city that designates separate areas for residency and business? A) Land area laws. B) Zoning laws. C) City ordinance law. D) Industrial business license. Show Answer Correct Answer: B) Zoning laws. 16. What is a characteristic of a monopolistic market? A) Products are identical. B) Entry into the industry is easy. C) Producers have complete control over price. D) There is only one producer. Show Answer Correct Answer: D) There is only one producer. 17. The orange sellers in a Mexican mercado are in what market structure? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 18. The market structure that exists when there are many small businesses selling one standardized product A) Pure competition. B) Imperfect competition. C) Pure market. D) Monopoly. Show Answer Correct Answer: A) Pure competition. 19. Which of the following lists shows the types of market ordered from highest to lowest price? A) Oligopoly, perfect competition, monopoly. B) Perfect competition, monopoly, oligopoly. C) Monopoly, oligopoly, perfect competition. D) Perfect competition, oligopoly, monopoly. E) Monopoly, perfect competition, oligopoly. Show Answer Correct Answer: C) Monopoly, oligopoly, perfect competition. 20. In oligopoly A) Firms compete with each other only by raising and lowering quantity because prices are fixed. B) The fewness of firms creates mutual interdependence in pricing among the firms. C) The firm is the industry. D) Firms have no difficulty entering and leaving the market. E) The firm having a natural monopoly sets price for the others. Show Answer Correct Answer: B) The fewness of firms creates mutual interdependence in pricing among the firms. ← 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