This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 77 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 77 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A market structure where each firm is a small part of the total industry in which it operates is A) An oligopoly. B) A monopoly. C) A competitive market. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 2. When Supply and Demand are the same, what condition exists? A) Equilibrium. B) Monopoly. C) Imperfect Competition. D) Command Economy. Show Answer Correct Answer: A) Equilibrium. 3. In a perfectly competitive market the products are commonly called ..... A) Commodities. B) Consumable. C) Contractual. D) Competitive. Show Answer Correct Answer: A) Commodities. 4. What is the difference between average cost (AC) pricing and marginal cost (MC) pricing? A) Allocative efficiency is attained under AC pricing but not so under MC pricing. B) AC pricing allows the firm to earn normal profits but MC pricing will give rise to subnormal profits. C) AC pricing, and not MC pricing, allows the firm to maximise profits. D) AC pricing, and not MC pricing, can be used by a government to regulate a natural monopoly. Show Answer Correct Answer: B) AC pricing allows the firm to earn normal profits but MC pricing will give rise to subnormal profits. 5. The harm, cost or inconvenience suffered by a third party because of actions of others. A) Neutral externalities. B) Positive externalities. C) Primary externalities. D) Negative externalities. Show Answer Correct Answer: D) Negative externalities. 6. Someone who enjoys the benefit of a good or service without paying for it. (Mr Macerata and NPR ) A) Dead Weight Loss. B) Oligopoly. C) Free Rider. D) Free loader. Show Answer Correct Answer: C) Free Rider. 7. What needs to be true in order for a monopolist to price discriminate? A) Some customers must have a higher reservation prices than others for the same good. B) All customers must have the same reservation prices for the same good. C) It must be possible for customers to resel the good. D) The firm cannot have market power. Show Answer Correct Answer: A) Some customers must have a higher reservation prices than others for the same good. 8. Reductions of combined consumer and producer surplus A) Deadweight loss. B) Elasticity. C) Tax incidence. D) Surplus. Show Answer Correct Answer: A) Deadweight loss. 9. A large telephone company has hired lobbyists to try to persuade lawmakers to reduce governmental regulation over the telecommunications industry. Why might the company do this? A) Some regulations are costly to implement and cut into profits. B) Many regulations promote too much competition, driving down prices. C) Certain regulations result in rapid business growth, which some companies find difficult to handle. D) All of these. Show Answer Correct Answer: A) Some regulations are costly to implement and cut into profits. 10. The fast food industry would be be categorized as: A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: C) Monopolistic competition. 11. A person who does not pay for a good but benefits from it anyways is known as a A) Jerk. B) Free rider. C) Cartel. D) None of above. Show Answer Correct Answer: B) Free rider. 12. Which market structure is characterized by a large number of firms selling differentiated products? A) Monopolistic competition. B) Perfect competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic competition. 13. A large producer of business and personal computers buys a company that produces computers for the home market. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: A) Horizontal. 14. Firms face competition when they produce a good A) In a market with natural barriers to entry. B) That has a close substitute. C) Is unique. D) In a market with legal barriers to entry. Show Answer Correct Answer: B) That has a close substitute. 15. Luna, Aria, and Lily are running a lemonade stand in a Perfectly Competitive Market. What does their supply curve represent? A) Shows the quantity of lemonade that they are willing and able to consume at different prices. B) Shows the quantity of lemonade that they are willing and able to buy at different prices. C) Shows the quantity of lemonade that they are willing and able to produce at different prices. D) Shows the quantity of lemonade that they are willing and able to sell at different prices. Show Answer Correct Answer: D) Shows the quantity of lemonade that they are willing and able to sell at different prices. 16. This is a partner of a business that only has (usually smaller) financial stake in the business. A) Limited Partner. B) General Partner. Show Answer Correct Answer: A) Limited Partner. 17. Which of the following would be considered "unfair" business methods? A) Price-cutting. B) Discounts. C) Competitive pricing. D) Product differentiation. Show Answer Correct Answer: A) Price-cutting. 18. To maximize profit, a monopolistically competitive firm ..... A) Takes the price as a given and chooses its quantity, just as a competitive firm does. B) Takes the price as a given and chooses its quantity, just as a colluding oligopolist does. C) Chooses its quantity and price, just as a competitive firm does. D) Chooses its quantity and price, just as a monopoly does. Show Answer Correct Answer: D) Chooses its quantity and price, just as a monopoly does. 19. In 1890, the government passed the Sherman Antitrust Law to ..... A) Prevent future monopolies. B) Break up a major monopoly. C) Regulate existing monopolies. D) Create zones for existing monopolies. Show Answer Correct Answer: B) Break up a major monopoly. 20. Costs that change as the quantity of outputs changes. A) Fixed Costs. B) Variable Costs. Show Answer Correct Answer: B) Variable Costs. ← 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