This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 93 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Monopolies don't have an incentive to increase quality or innovate because ..... A) To increase profit. B) They need to in order to stay competitive. C) False, monopolies will continue to increase cost to make consumers happy. D) They control the market. Show Answer Correct Answer: D) They control the market. 2. To be considered an oligopoly, the 4 largest firms must control at least ..... of the market. A) 30%. B) 40%. C) 50%. D) 60%. Show Answer Correct Answer: B) 40%. 3. SSEMI3 b Which market structure has the lowest barrier to entry? A) Perfect Competition. B) Monopoly. C) Oligopoly. D) None have a low barrier to entry. Show Answer Correct Answer: A) Perfect Competition. 4. How many units will consumers demand at a price of $ 10? A) 0. B) 200. C) 400. D) 800. Show Answer Correct Answer: D) 800. 5. Easy for new firms to enter the industry A) Perfect competition and monopolistic competition. B) Perfect competition and oligopolies. C) Oligopolies and monopolies. D) Monopolies and monopolistic competition. Show Answer Correct Answer: A) Perfect competition and monopolistic competition. 6. Rylie doesn't understand why the mailman puts mail in her mailbox, but UPS and FedEx deliver packages to her front porch. The reason for this is because the Post Office has a ..... monopoly in regard to putting objects inside her mailbox. A) Natural. B) Technological. C) Geographic. D) Government. Show Answer Correct Answer: D) Government. 7. In the US, gasoline is only produced by 6 major producers. This market is closest to: A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 8. A business co-owned by two or more partners A) Sole proprietorship. B) Franchise. C) Corporation. D) Partnership. Show Answer Correct Answer: D) Partnership. 9. Why do producers create more goods as market price increases? A) To reduce cost. B) To increase output. C) To eliminate scarcity. D) To earn higher profit. Show Answer Correct Answer: D) To earn higher profit. 10. Two toy companies decide to merge because they believe they will be able to develop more ideas for new toys and produce and sell them faster, at lower costs. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: A) Horizontal. 11. Which market structure has businesses that sell identical goods? A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 12. Which industry is an example of oligopoly? A) Dairy farming. B) Tomato production. C) Diamond mining. D) Car manufacturing. Show Answer Correct Answer: D) Car manufacturing. 13. Google is an example of a A) Oligopoly. B) Monopoly. C) Pure / perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 14. If a company that owns gas stations merges with an oil tanker trucking company and a refinery it is most likely a ..... merger A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: B) Vertical. 15. A merger that joins companies that are at different steps of producing the same product is called a ..... A) Vertical merger. B) Conglomerate. C) Horizontal merger. D) Corporation. Show Answer Correct Answer: A) Vertical merger. 16. Which of the following goods is the best example of a natural monopoly? A) Lottery tickets. B) Cell phones. C) Public utilities. D) Diamonds. Show Answer Correct Answer: C) Public utilities. 17. Which of the following is a condition of perfect competition? A) Products produced by rival firms are perfect substitutes. B) Individual firms can affect market supply. C) Industry sales are small. D) Restricted entry and exit. Show Answer Correct Answer: A) Products produced by rival firms are perfect substitutes. 18. Which part of the economy includes all of the transactions between individuals, households, firms, or businesses? A) Economic Sector. B) Public Sector. C) Private Sector. D) Sector 7-G. Show Answer Correct Answer: C) Private Sector. 19. An example of a horizontal merger might be if a: A) Publishing company bought a movie company. B) Textile company became a multinational corporation. C) Food chain bought another food chain. D) Trucking company bought an airline. Show Answer Correct Answer: C) Food chain bought another food chain. 20. SSEMI3 b In which market structure would a single firm have the most control over price? (pick 1) A) Monopoly. B) Oligopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: A) Monopoly. ← 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