This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 76 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In what market form would companies engage in collusion or price fixing? A) Monopolistic Competition. B) Perfect (Pure) Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 2. This occurs when large firms produce more than 80% of the total industrial output A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: C) Oligopoly. 3. Number of sellers in an oligopoly A) One. B) A few. C) Many. D) None of above. Show Answer Correct Answer: B) A few. 4. Kai, Charlotte, and Nora are running different coffee shops in a monopolistic competition. What physical characteristics can they use for non-price competition? A) Location of their coffee shop, level of service, and advertising. B) Location of their coffee shop, level of service, and image or status of their coffee shop. C) Level of service, advertising, and image or status of their coffee shop. D) Location of their coffee shop, advertising, and image or status of their coffee shop. Show Answer Correct Answer: B) Location of their coffee shop, level of service, and image or status of their coffee shop. 5. The name given to the ideal price and quantity sold of a product so that both supply and demand can be maintained. A) Shortage. B) Incentive. C) Economics. D) Equilibrium. Show Answer Correct Answer: D) Equilibrium. 6. Role of Government A) The government has the power to maintain competition and regulate certain monopolies that exist for the public's welfare. B) The impact of government on a society. C) The importance of government in a society. D) The role of government in a society. Show Answer Correct Answer: A) The government has the power to maintain competition and regulate certain monopolies that exist for the public's welfare. 7. Nike signed Michael Jordan in 1984 in order to get more young people to buy Nike instead of Converse or adidas. They tried to show their shoe was cool and therefore superior. This is- A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopolistic competition. 8. Which of the following markets is NOT likely to be an example of perfect competition A) Agricultural products. B) The market for brownies at First Coast. C) A large corporation. D) All of the previous are examples of perfect competition. Show Answer Correct Answer: C) A large corporation. 9. Characteristics of perfect Competition all expect A) No transaction cost. B) Many buyers and sellers. C) Price bias. D) Company makes similar products. Show Answer Correct Answer: C) Price bias. 10. A formal, illegal agreement between firms to set prices or behave in a cooperative manner is an example of A) Trust. B) Collusion. C) Economies of scale. D) Oligopoly. Show Answer Correct Answer: B) Collusion. 11. Which of the following statements is in correct? A) Under monopoly there is no difference between a firm and industry. B) A monopolist may restrict the output and raise the price. C) Free entry and exit in a Monopoly Market. D) Product differenciation is peculiar to monopolistic competition. Show Answer Correct Answer: C) Free entry and exit in a Monopoly Market. 12. An oligopoly is an industry where A) One seller dominates. B) A few sellers dominate. C) Many sellers struggle to get market share. D) Firms are so powerful they make government submit to them. Show Answer Correct Answer: B) A few sellers dominate. 13. In Perfect Competition products are differentiated A) True. B) False. Show Answer Correct Answer: A) True. 14. SSEMI3 b A technological monopoly can be established if only one firm can sell a product because the government has issued them a: A) Patent. B) Price Ceiling. C) Supply monopoly. D) Surplus. Show Answer Correct Answer: A) Patent. 15. The greater the competition in market, the greater the profit A) True. B) False. C) Neither. D) None of above. Show Answer Correct Answer: B) False. 16. When all inputs increase by 10%, output rises by 5%. What is this economic phenomenon? A) Diminishing marginal returns. B) Increasing marginal returns. C) Increasing returns to scale. D) Decreasing returns to scale. Show Answer Correct Answer: D) Decreasing returns to scale. 17. Home Depot participates in which market structure? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 18. Which of the following has many buyers and many sellers? A) Monopoly. B) Duopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 19. MONOPOLISTIC COMPETITION can be seen as a mixture between ..... and ..... market structures. A) Monopoly and oligopoly. B) Perfect competition and oligopoly. C) Perfect competition and monopoly. D) None of above. Show Answer Correct Answer: C) Perfect competition and monopoly. 20. Exists when there are no other producers within a certain region A) Natural monopoly. B) Government monopoly. C) Technological monopoly. D) Geographic monopoly. Show Answer Correct Answer: D) Geographic monopoly. ← 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