This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 74 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 74 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In Perfect Competition there are high barriers to entry A) True. B) False. Show Answer Correct Answer: B) False. 2. According to Lionel Robbins, what are ends? A) Needs. B) Resources. C) Demand. D) Supply. Show Answer Correct Answer: A) Needs. 3. Occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers, buyers have perfect or full information, and companies cannot determine prices A) Monopoly. B) Market. C) Perfect Competition. D) None of above. Show Answer Correct Answer: C) Perfect Competition. 4. An organized refusal to buy from a particular company is called: A) Strike. B) Picket. C) Boycott. D) Lockout. Show Answer Correct Answer: C) Boycott. 5. A business that cannot set the prices for its products but accepts the market price that is set by Supply and Demand A) Sole Proprietorship. B) Price Taker. C) Cartel. D) Price Maker. Show Answer Correct Answer: B) Price Taker. 6. Is no transaction cost a characteristic of monopoly market? A) True. B) False. Show Answer Correct Answer: B) False. 7. Firms in this kind of market produce goods that have very close substitutes. A) Perfect Competition. B) Monopolistic Competition. C) Pure Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic Competition. 8. Why does the government give patents to companies (and create monopolies)? A) To control prices. B) To control output of goods. C) To allow the company to make back their investment. D) To allow price discrimination. Show Answer Correct Answer: C) To allow the company to make back their investment. 9. When businesses make an agreement to split up geographic areas for business purposes, it is called a A) Barrier to Entry. B) Monopoly. C) Carton. D) Cartel. Show Answer Correct Answer: D) Cartel. 10. How many phases are in the Business Cycle? A) 2. B) 4. C) 6. D) 8. Show Answer Correct Answer: B) 4. 11. What is the main source of market power in monopolistic competition? A) Price discrimination. B) Product differentiation. C) Economies of scale. D) Perfect competition. Show Answer Correct Answer: B) Product differentiation. 12. What is the equilibrium condition for a monopolistic competition firm? A) Average revenue equals average cost. B) Total revenue equals total cost. C) Price equals marginal cost. D) Marginal revenue equals marginal cost. Show Answer Correct Answer: D) Marginal revenue equals marginal cost. 13. Which below is NOT a type of monopoly? A) Natural Monopoly. B) Government Monopoly. C) Differentiated Monopoly. D) Geographic Monopoly. Show Answer Correct Answer: C) Differentiated Monopoly. 14. If two competing soft drink companies decided to merge and combine into one company, this would be an example of what? A) A conglomerate. B) A vertical merger. C) A horizontal merger. D) A corporation. Show Answer Correct Answer: C) A horizontal merger. 15. A sole supplier of a product with no close substitutes A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. E) Barriers to entry. Show Answer Correct Answer: A) Monopoly. 16. Who would NOT be considered an entrepreneur? A) A doctor who starts their own practice. B) A doctor who works at a hospital. C) A doctor who wrote a book in their spare time. D) None of above. Show Answer Correct Answer: B) A doctor who works at a hospital. 17. The additional revenue that will be generated by increasing product sales by one unit. A) Profit. B) Marginal Revenue. C) Relative Revenue. D) Profit Maximization. Show Answer Correct Answer: B) Marginal Revenue. 18. Stocks:..... Bonds:..... A) Supply, demand. B) Dividends, interest. C) Lending, buying. D) Corporation, sole proprietorship. Show Answer Correct Answer: B) Dividends, interest. 19. What is the relationship between marginal revenue and price elasticity of demand? A) They are directly related. B) They are inversely related. C) They have no relationship. D) They are unrelated. Show Answer Correct Answer: B) They are inversely related. 20. To attract buyers, monopolistic competitors tend to rely on ..... A) Low prices. B) Superior products. C) Price controls. D) Advertising and promotions. Show Answer Correct Answer: D) Advertising and promotions. ← 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