This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 78 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 78 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following best describes the U.S. Postal Service? A) A perfectly competitive firm. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 2. Mr. Simpson is liable for all the debts of his company. What type of business organization is this? A) Monopoly. B) Corporation. C) Conglomerate. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 3. If Mark expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is standardized and identical to others and that he will have no control over the price. The market structure he is MOST likely participating in is A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: C) Perfect competition. 4. U.S. agriculture is most closely associated with which of the following markets? A) Monopolistic competition. B) Perfect competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Perfect competition. 5. A producer's demand for labor is called ..... A) Supply and Demand. B) Minimum Wage. C) Market Allocation. D) Derived Demand. Show Answer Correct Answer: D) Derived Demand. 6. Product Differentiation A) Creating a new product. B) Lowering the price of a product. C) Increasing the advertising budget. D) Product differentiation may be real or perceived. Show Answer Correct Answer: D) Product differentiation may be real or perceived. 7. Which type of economy did Adam Smith promote? A) Market. B) Mixed. C) Command. D) Traditional. Show Answer Correct Answer: A) Market. 8. AN AGREEMENT AMONG MEMBERS OF AN OLIGOPOLY TO SET PRICES AND PRODUCTION LEVELS. A) PREDATORY PRICES. B) PRICE FIXING. C) CARTELS. D) COLLUSION. Show Answer Correct Answer: D) COLLUSION. 9. Allocative efficiency occurs where A) P = MC. B) P = ATC. C) P = min ATC. D) MR = MC. E) MR = 0. Show Answer Correct Answer: A) P = MC. 10. A market that runs most efficiently when one large firm provides all of the output. It's inconvenient or impractical to have several competing firms. Example:Electric company for DR A) Natural Monopoly. B) Monopoly. C) Government Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Natural Monopoly. 11. A firm in perfect competition faces a horizontal demand curve for all of the following reasons except that A) The firm takes the price as given from the market. B) The product the firm sells is identical to the product sold by other firms in the market. C) The firm is unable to influence the market price because of its small size. D) The firm's sales are limited so it is impossible for the firm to sell more and lower the price. E) The firm can sell as much as it wants at the price established in the market. Show Answer Correct Answer: D) The firm's sales are limited so it is impossible for the firm to sell more and lower the price. 12. Local stores sell a particular pair of sneakers for $ 80. A picture of a basketball star Lebron James wearing these sneakers appears in all the local Ohio newspapers. The next day, sales for sneakers start to rise. What is likely to happen to the price of the sneakers over the next several weeks? A) People will refuse to buy these sneakers. B) The price for the sneakers will not change. C) The price will fall as people learn Lebron James wears them. D) The price of the sneakers will rise as more people want similar sneakers. Show Answer Correct Answer: D) The price of the sneakers will rise as more people want similar sneakers. 13. Cars, movie studios, cell phone service, airlines are examples A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 14. It is usually very difficult to enter a market that is a monopoly. A) True. B) False. Show Answer Correct Answer: A) True. 15. The ability of a company to change prices and output like a monopolist A) Market power. B) Market ability. C) Market trends. D) Market influence. Show Answer Correct Answer: A) Market power. 16. Which of the following is a NEGATIVE externality? A) Pollution. B) Coming to school sick. C) Blasting loud music outside in the middle of the night. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. When competing businesses work together and agree to set prices for their competing products A) Price fixing. B) Market allocation. C) Predatory pricing. D) Merger. Show Answer Correct Answer: A) Price fixing. 18. A monopoly is characterized by having no substitutable goods. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. An oligopoly is a market or an industry A) That is dominated by just a few firms that produce similar or identical products. B) In which a large number of firms produce essentially the same product. C) That consists of a single producer of a product that has no close substitutes. D) In which a large number of producers provide goods that are similar but varied. Show Answer Correct Answer: A) That is dominated by just a few firms that produce similar or identical products. 20. The defining characteristic of a natural monopoly is ..... A) Constant marginal cost over the relevant range of output. B) Economies of scale over the relevant range of output. C) Constant returns to scale over the relevant range of output. D) Diseconomies of scale over the relevant range of output. Show Answer Correct Answer: B) Economies of scale over the relevant range of output. ← 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