This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 91 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 91 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Pure oligopoly is based on the ..... products. A) Differentiated. B) Homogeneous. C) Unrelated. D) None of the above. Show Answer Correct Answer: B) Homogeneous. 2. Mergers and acquisitions might result in A) More competition. B) Smaller companies. C) Unfair competition. D) None of above. Show Answer Correct Answer: C) Unfair competition. 3. In a perfect competition market structure, when firms join or leave due to ..... barriers to entry, market ..... will change/shift. A) High / demand. B) Free / demand. C) High / supply. D) Free / supply. Show Answer Correct Answer: D) Free / supply. 4. Using advertising to try to convince customers to buy one product over another is a form of A) Antitrust competition. B) Focus competition. C) Monopolistic competition. D) Non-price competition. Show Answer Correct Answer: D) Non-price competition. 5. A firm in a monopolistic competitive market will be able to do which of the following? A) Easy entry into the market. B) Some ability to raise prices. C) Non-price competition. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Which of the following is a modern cartel? A) Coca-Cola, Pepsi, and Dr Pepper Snapple Group. B) Microsoft. C) Organization of Petroleum Exporting Countries. D) Standard Oil Company. Show Answer Correct Answer: C) Organization of Petroleum Exporting Countries. 7. There are only certain venues that can be considered a market. A) True. B) False. Show Answer Correct Answer: B) False. 8. Which of the following is an advantage of monopolistic competition? A) It would be easier and more cost efficient for the government to practice this market structure. B) This market structure will require creativity and innovation from the sellers. C) Potential sellers can easily enter the market since the products are not differentiated. D) None of above. Show Answer Correct Answer: B) This market structure will require creativity and innovation from the sellers. 9. Why do goods made in factories that cause pollution tend to be overproduced? A) Some stores stock more than they can sell. B) Some costs are not charged to the producer. C) Some benefits are wanted by the community. D) Some people may refuse to purchase the items. Show Answer Correct Answer: B) Some costs are not charged to the producer. 10. An economic system in which the government makes all economic decisions A) Market. B) Command. C) Traditional. D) Mixed. Show Answer Correct Answer: B) Command. 11. The ease of sellers entering the market is a factor in any market structure. A) True. B) False. Show Answer Correct Answer: A) True. 12. SSEMI3 b You go to a shoe store at the mall. The store carries many different brands and styles of shoes. What market structure would best describe this situation? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic Competition. 13. SSEMI3 b This is a market structure in which a few very large firms dominate the market for a particular product A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 14. If a firm is producing the socially optimal quantity, then what is price equal to at that point of production? A) Marginal cost (MC). B) Marginal revenue (MR). C) Average total cost (ATC). D) Average variable cost (AVC). Show Answer Correct Answer: A) Marginal cost (MC). 15. All of the following are characteristics of perfectly competitive markets EXCEPT A) Many sellers. B) Identical goods. C) Many buyers. D) Perfect information. E) Barriers to entry. Show Answer Correct Answer: E) Barriers to entry. 16. Barriers to entry refers to: A) Is it easy or difficult to enter to leave the industry. B) The idea that market forces of supply and demand do not always provide the maximum benefit for society. C) Can a producer or supplier make prices or do they have to take the prices. D) The amount of locks on the business premises. Show Answer Correct Answer: A) Is it easy or difficult to enter to leave the industry. 17. How is an increase in demand depicted on the demand curve? A) The curve bends inward. B) The curve straightens up. C) The curve slopes upward. D) The curve slopes downward. Show Answer Correct Answer: D) The curve slopes downward. 18. Purely competitive market is price taker while pure monopolist is price maker. A) True. B) False. Show Answer Correct Answer: A) True. 19. Forces that reduce a firms per unit cost. =) A) Economies of force. B) Economies of scale. C) Economic equality. D) Economic inequality. Show Answer Correct Answer: B) Economies of scale. 20. Collusion between companies on prices is what makes cartels illegal in America A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: C) Oligopoly. ← 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