This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. No choice or competition, higher prices A) Perfect Competition. B) Monopolistic comeptition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 2. Agreements between duopolies are usually difficult to maintain because A) They usually cannot agree on the quantity to sell. B) They usually cannot agree on what price to set. C) They usually want to charge higher prices than the monopolist. D) Individual monopolists are often dishonest. E) Each duopoly has a drive to control a larger market share. Show Answer Correct Answer: E) Each duopoly has a drive to control a larger market share. 3. Many firms selling identical product and have no control over price. A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 4. An example of monopolistic competition where products are somewhat similar A) Monopoly. B) Monopolistic competition. Show Answer Correct Answer: B) Monopolistic competition. 5. The demand curve for the MONOPOLY market structure will be A) Inelastic. B) Perfectly elastic. C) Highly elastic. D) Perfectly inelastic. Show Answer Correct Answer: A) Inelastic. 6. Name one characteristic of monopolistic competition. A) Price uniformity. B) Product differentiation. C) Perfect competition. D) Barriers to entry tagsSSEMI3. Show Answer Correct Answer: B) Product differentiation. 7. If a company controls a specific process for making windows, it has a A) Technological monopoly. B) Natural monopoly. C) Government monopoly. D) None of above. Show Answer Correct Answer: A) Technological monopoly. 8. Competition amongst producers using price to differentiate their product is known as ..... ? A) Product differentiation. B) Non price competition. C) Price competition. D) None of the above. Show Answer Correct Answer: C) Price competition. 9. ABC, CBS, FOX and NBC are a great example of this market structure A) Perfect Competition. B) Imperfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 10. Which of the following represents a short run fixed cost for a restaurant? A) The ingredients. B) The outdoor signage. C) The employees. D) Electricity. Show Answer Correct Answer: B) The outdoor signage. 11. Large firms can work together called ..... The desire to do so is to raise prices which is called ..... A) Collusion; price fixing. B) Cartels; price setting. C) Teamwork; price-fixer-upper. D) Oligopolies; price determination. Show Answer Correct Answer: A) Collusion; price fixing. 12. A business that does not have to consider competitors when setting its prices A) Competitive Pricing. B) Price Maker. C) Equilibrium Price. D) Price Taker. Show Answer Correct Answer: B) Price Maker. 13. What are the conditions to form a monopoly? A) More than one firm producing a variety of goods. B) 1. One firm2. No variety of goods3. Complete barriers to entry4. Complete control over price. Show Answer Correct Answer: B) 1. One firm2. No variety of goods3. Complete barriers to entry4. Complete control over price. 14. Oligopolies may sometimes act like monopolies when they use cooperative pricing. Which form of cooperative pricing is legal in the United States? A) Cartel formation. B) Collusion. C) Price leadership. D) All of the above. Show Answer Correct Answer: C) Price leadership. 15. What type of business organization can raise capital the easiest? A) Sole proprietorship. B) Partnership. C) Corporation. D) Non-profit. Show Answer Correct Answer: C) Corporation. 16. What government commission ensures work places are free of hazards that may cause death or serious injury? A) EEOC. B) FDA. C) FLSA. D) OSHA. Show Answer Correct Answer: D) OSHA. 17. Which of the following is not a characteristic of monopolistic competition? A) Products are very similar so there must be product differentiation. B) Very competitive. C) Lots of advertising. D) Identical products. Show Answer Correct Answer: D) Identical products. 18. The example from the notes of a business that had a pure monopoly was ..... A) The Post Office. B) The United Parcel Service. C) Federal Express. D) I wasn't paying attention. Show Answer Correct Answer: A) The Post Office. 19. Suppose that a perfectly competitive firm is currently producing a quantity of output each month at which marginal cost is rising but is still significantly less than marginal revenue. To maximize profit, the firm should ..... A) Increase its quantity of output. B) Decrease its quantity of output. C) Increase its price. D) Decrease its price. Show Answer Correct Answer: A) Increase its quantity of output. 20. Profit Maximization A) Reducing costs. B) Minimizing expenses. C) Maximizing losses. D) Allows producers to charge more for a better product, because they have convinced consumers that their product is better. Show Answer Correct Answer: D) Allows producers to charge more for a better product, because they have convinced consumers that their product is better. ← 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