This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 9 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... Is a license to operate an individually owned business in a special geographic area as if it were a part of a large chain. A) Franchise. B) Non-Profit. C) Government Owned. D) S Corporation. Show Answer Correct Answer: A) Franchise. 2. An agreement among firms to divide the market or set prices is known as collusion. A) True. B) False. Show Answer Correct Answer: A) True. 3. The market structure likely to have the lowest prices is: A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect Competition. 4. As a determinant of demand, changes in peoples' incomes cause them to purchase which two types of goods? A) Relative and real. B) Normal and inferior. C) Imports and local. D) Capital and restricted. Show Answer Correct Answer: B) Normal and inferior. 5. In a monopoly market, the seller faces no ..... A) Complain. B) Worries. C) Demand. D) Competition. Show Answer Correct Answer: D) Competition. 6. Non-price Competition is ..... A) A market that runs most efficiently when one large firm supplies all of the output; when competition would create chaos. B) A formal organization of producers that agree to coordinate prices and production. C) Competing on a basis other than price such as fragrance, location, color. D) One firm in the private sector controlling the market. Show Answer Correct Answer: C) Competing on a basis other than price such as fragrance, location, color. 7. Process in which a lender reclaims the property due to a lack of payment by the borrower A) Foreclosure. B) Restsession. C) Redemption. D) Vengeance. Show Answer Correct Answer: A) Foreclosure. 8. Few Large sellers with differenetiated or identical products A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 9. What is a contract issued by a government entity that gives a firm a sole right to provide a good or service in a certain area? A) A copyright. B) A license. C) A patent. D) A public franchise. Show Answer Correct Answer: D) A public franchise. 10. Profit is ..... A) The same as marginal revenue. B) Fixed expenses + variable expenses. C) Total revenue-total cost. D) Total revenue-marginal cost. Show Answer Correct Answer: C) Total revenue-total cost. 11. Productive efficiency occurs where A) P = MC. B) P = ATC. C) P = min ATC. D) MR = MC. E) MR = 0. Show Answer Correct Answer: C) P = min ATC. 12. When a major airline lowers its prices, other airlines will probably A) Maintain existing prices. B) Raise their prices. C) Go out of business. D) Lower their prices. Show Answer Correct Answer: D) Lower their prices. 13. An unintended side-effect that either benefits or harms a third party not involved in the activity that caused it is a(n) A) Let it happen. B) Externality. C) Price-fixing. D) Monopoly. Show Answer Correct Answer: B) Externality. 14. If a monopoly can perfectly price discriminate, then its marginal revenue curve will be A) The same as its marginal cost curve. B) The same as its demand curve. C) A vertical line at profit maximizing output. D) The same as its supply curve. E) Undefined, it does not exist. Show Answer Correct Answer: B) The same as its demand curve. 15. The situation in which sellers undercut each other's prices in an attempt to gain market share is called: A) Interdependent pricing. B) Price war. C) Price leadership. D) Price competition. Show Answer Correct Answer: B) Price war. 16. Wheat has seen a decrease in demand of 5%, while the price has increased 7% A) 1.4 inelastic. B) 1.4 elastic. C) .71 inelastic. D) .71 elastic. Show Answer Correct Answer: C) .71 inelastic. 17. If a monopolist wants to sell a larger quantity, it must A) Set a higher price. B) Maintain the current price. C) Set a lower price. D) Implement new technology. Show Answer Correct Answer: C) Set a lower price. 18. What type of market structure has a few firms, and a lot of control over price? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 19. Which type of market structures has very few producers(companies) that control the majority of the market? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 20. When businesses set prices below cost for a time to drive competitors out of a market A) Predatory Pricing. B) Perfect Competition. C) Regulation. D) Non-Price Competition. Show Answer Correct Answer: A) Predatory Pricing. ← 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