This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 84 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 84 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market structure is BEST indicated by the soda market? A) Monopoly. B) Pure competition. C) Oligopoly. D) Natural monopoly. Show Answer Correct Answer: C) Oligopoly. 2. The public power company is an example of which market structure? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: B) Monopoly. 3. In monopolistic competition, what happens if the price difference between two brands becomes large? A) Consumers become more loyal to their preferred brand. B) Consumers switch to a different market structure. C) Consumers stop buying the product. D) Consumers are more likely to substitute one brand for another. Show Answer Correct Answer: D) Consumers are more likely to substitute one brand for another. 4. What is the term when two companies combine resources and become one giant company? A) Merger. B) Reinvestment. C) Monopoly. D) Regulatory. Show Answer Correct Answer: A) Merger. 5. In perfect competition who is not involved at all A) Government. B) Sellers. C) Buyers. D) Goods. Show Answer Correct Answer: A) Government. 6. An agreement among firms to charge the same price is called ..... A) Royalties. B) Price war. C) Price fixing. D) Differentiation. Show Answer Correct Answer: C) Price fixing. 7. If every consumers needs are being met perfectly and every good that is being made is being sold, what type of efficiency is being achieved? A) Productive Efficiency. B) Allocative Efficiency. Show Answer Correct Answer: B) Allocative Efficiency. 8. The cartel model of oligopoly predicts that A) All firms in the industry act in unison to set monopoly price. B) Each producer acts independently of others. C) Firms follow the low-price firm in the industry. D) Differences in cost of production discourage individual firms from cheating. E) The markup on marginal cost should be the same for all firms. Show Answer Correct Answer: A) All firms in the industry act in unison to set monopoly price. 9. Which is NOT a characteristic of an oligopoly? A) Many sellers, few buyers. B) Standardized or differentiated products. C) More control of prices. D) Little freedom to enter/exit market. Show Answer Correct Answer: A) Many sellers, few buyers. 10. In 1914, the government passed the Clayton Antitrust Act to outlaw the sale of the same product to different consumers at different prices, a practice known as ..... A) Cease and desist. B) Economies of scale. C) Price discrimination. D) Restraint intervention. Show Answer Correct Answer: C) Price discrimination. 11. Which of the following does NOT represent the Price Searchers market? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: A) Perfect Competition. 12. A copyright or patent is an example of a ..... monopoly. A) Technological. B) Natural. C) Government. D) Geographic. Show Answer Correct Answer: A) Technological. 13. A major characteristic of a monapoly is A) It is a price maker. B) It is a price taker. C) There are 2 sellers of a product. D) There are a few sellers. Show Answer Correct Answer: A) It is a price maker. 14. We discussed whether ..... should become a public utility. A) Internet. B) Electricity. C) Sewage. D) Recycling. Show Answer Correct Answer: A) Internet. 15. **Let's see how close we paid attention** In cases of monopolies-such as utility companies-prices are kept under control MAINLY through A) Competition. B) Supply and Demand. C) Government Regulation. D) The invisible hand of the free market. Show Answer Correct Answer: C) Government Regulation. 16. An automobile manufacturer that buys a baseball team. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: C) Conglomerate. 17. Does patent laws encourage monopoly? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 18. In this kind of market structure, sellers don't have any control over the price of the products. A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: C) Perfect Competition. 19. When the revenue is equal to price, which types of market structure? A) Competitive monopoly. B) Oligopoly. C) Perfect competition. D) All are types. Show Answer Correct Answer: C) Perfect competition. 20. What company has the smallest percentage of sales in the U.S? A) Sole proprietorship. B) Corporations. C) Multinationals. D) Partnerships. Show Answer Correct Answer: A) Sole proprietorship. ← 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