This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 61 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A(n) ..... monopoly is a market that runs most efficiently when one large firm provides that service or good. A) Natural. B) Government. C) Franchise. D) Industrial. Show Answer Correct Answer: A) Natural. 2. Ethan, Noah, and Daniel are discussing market structures. They come across the term 'monopoly'. What is a monopoly? A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service. B) A monopoly is a market structure in which companies have equal control over a particular product or service. C) A monopoly is a market structure in which a single company has control over multiple products or services. D) A monopoly is a market structure in which multiple companies have control over a particular product or service. Show Answer Correct Answer: A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service. 3. If a firm in monopolistic competition is incurring losses in the short run, then they should only shutdown entirely if which of the following is true? A) P < AVC. B) P < ATC. C) P < AFC. D) TR < AVC. Show Answer Correct Answer: A) P < AVC. 4. An example of a barrier to entry is A) High start-up costs. B) Low start-up costs. C) Perfect competition. D) Government deregulation. Show Answer Correct Answer: A) High start-up costs. 5. In which market structure are sellers mutually interdependent? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 6. Effort by a producers or sellers of a particular product to secretly set production levels or prices. A) Patent. B) Price War. C) Product Differentiation. D) Collusion. Show Answer Correct Answer: D) Collusion. 7. Businesses maximize profit when they produce at a level where ..... A) Total revenue = total cost. B) Marginal revenue = marginal cost. C) Total revenue > total cost. D) Marginal revenue < marginal cost. Show Answer Correct Answer: B) Marginal revenue = marginal cost. 8. If you want to form this type of business organization, you will have to get permission from a state or national government. This can be costly and require a lawyer. A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 9. Which market structure does Game Theory apply to? A) Monopoly. B) Oligopoly. C) Pure Competition. D) Monopolistic Competition. Show Answer Correct Answer: B) Oligopoly. 10. When a market has more competition between firms in the market what will happen to price for the product in that market? A) It will rise. B) It will fall. C) Stays the same. D) Unknowable. Show Answer Correct Answer: B) It will fall. 11. Ideal market where there are a large number of sellers of identical goods and services and in which no one seller controls supply or prices. A) Monopolistic Competition. B) Oligopoly. C) Perfect Competition. D) Natural Monopoly. Show Answer Correct Answer: C) Perfect Competition. 12. Markets like automobiles, cell phones, film production studios, and internet providers are examples of which market structure? A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 13. An aggreement among firms to sell at the same or similar price is known as ..... (illegal in the US) A) Price gouging. B) Price fixing. C) Price discrimination. D) Competitive pricing. Show Answer Correct Answer: B) Price fixing. 14. What is the term used to describe when a firm charges different prices to different customers for the same product? A) Price variation. B) Customer segmentation. C) Product differentiation. D) Price discrimination. Show Answer Correct Answer: D) Price discrimination. 15. An effective price floor must be set above equilibrium, resulting in: A) A shortage. B) A surplus. C) Limited choices. D) None of the above. Show Answer Correct Answer: B) A surplus. 16. Which market structure has very few existing in the world? A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 17. Because firms in a purely competitive market have to sell at equilibrium, they are ..... A) Price takers. B) Price searchers. C) Price givers. D) Price setters. Show Answer Correct Answer: A) Price takers. 18. Which of the following is not characteristic of a Monopolistic competition? A) Long run price occurs where Price = MIn ATC. B) It has a separate MR curve that is below the demand curve. C) Marginal cost is below the price. D) It can earn positive profit or economic loss in the short run only. E) It is never allocatively or productively efficient. Show Answer Correct Answer: A) Long run price occurs where Price = MIn ATC. 19. Bringing goods into the U.S. from another country. A) Imports. B) Exports. C) Shipment. D) Shipout. Show Answer Correct Answer: A) Imports. 20. In which of the following types of markets would you, in general, expect to find the lowest prices charged and the greatest amount of innovation? A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect 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