This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 97 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Some markets are perfectly competitive. A) True. B) False. Show Answer Correct Answer: B) False. 2. When P=MR=AR, what market structure is this? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 3. Which of the following statements about an oligopoly is false? A) There are high barriers to entry into the market. B) Firms' output and pricing decisions are irrelevant their competitors. C) There are only a few firms in the market. D) Firms in the market are mutually interdependent. E) Game theory is useful in analyzing the strategies of firms competing in the market. Show Answer Correct Answer: B) Firms' output and pricing decisions are irrelevant their competitors. 4. An example of Human Capital would include A) The higher the skill the lower the wages. B) The higher the skill the higher the wages. C) Specialized training does not equal higher pay. D) Unskilled workers and semi-skilled workers get equal pay. Show Answer Correct Answer: B) The higher the skill the higher the wages. 5. This market structure can act like a monopoly when the if the few firms involved all set prices the same A) Monopoly. B) Monopolistic Competition. C) Perfect Competitio. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 6. An example of this monopoly is the U.S. Postal Service A) Natural Monopoly. B) Technological Monopoly. C) Government Monopoly. D) Geographic Monopoly. Show Answer Correct Answer: C) Government Monopoly. 7. Apple Iphone Market(in 2006) A) Natural. B) Government. C) Technological. D) Geographic. Show Answer Correct Answer: C) Technological. 8. Numerous sellers offer similar but slightly different products A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 9. ..... is the study of decisions made by individuals and business. Examples of this area include how the price of homes in an area will impact the number of people who are willing and able to buy. A) Microeconomics. B) Socialism. C) Macroeconomics. D) Communism. Show Answer Correct Answer: A) Microeconomics. 10. A price taker is a seller that has no control over the price of the product it sells. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. For a monopolistically competitive firm, at the profit-maximizing quantity of output, A) Price exceeds marginal cost. B) Marginal revenue exceeds marginal cost. C) Marginal cost exceeds average revenue. D) Price equals marginal revenue. Show Answer Correct Answer: A) Price exceeds marginal cost. 12. There is non-price competition, but businesses compete by product differentiation and advertising A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Pure Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 13. The ability to produce a product with lower opportunity costs than another country A) Absolute advantage. B) Comparative advantage. C) Import. D) Export. Show Answer Correct Answer: B) Comparative advantage. 14. Trying to satisfy unlimited wants with limited resources defines ..... and is the fundamental problem of economics. A) Scarcity. B) Needs. C) Wants. D) Microeconomics. Show Answer Correct Answer: A) Scarcity. 15. Chick Fil A claims their chicken sandwich tastes better than Popeyes' chicken sandwich. This is an example of ..... A) Barrier to entry. B) Product differentiation. C) Patent. D) Copyright. Show Answer Correct Answer: B) Product differentiation. 16. Monopolists are able to control prices because they have A) Much competition and many substitutes. B) Much competition and no substitutes. C) No competition and many substitutes. D) No competition and no substitutes. Show Answer Correct Answer: D) No competition and no substitutes. 17. James, Scarlett, and Isla are running a lemonade stand in a perfectly competitive market. In the short run, at what point will their stand be in equilibrium? A) Where the price of lemonade equals their lowest cost. B) Where their average revenue equals total revenue and quantity sold equals price times quantity. C) Where quantity sold equals price times quantity and quantity equals price. D) Where their marginal cost equals marginal revenue and marginal cost is rising. Show Answer Correct Answer: D) Where their marginal cost equals marginal revenue and marginal cost is rising. 18. What is the difference between a monopoly and an oligopoly? A) Monopoly has low barriers to entry; oligopoly has high barriers to entry. B) Monopoly has competition; oligopoly does not. C) Monopoly has cartels; oligopoly has price wars. D) Monopoly has one seller; oligopoly has a few tagsSSEMI3. Show Answer Correct Answer: D) Monopoly has one seller; oligopoly has a few tagsSSEMI3. 19. Which of the following is the best example of a natural monopoly? A) Water company. B) The U.S. postal service. C) A patented good. D) Diamonds. Show Answer Correct Answer: A) Water company. 20. In which market structure must sellers take whatever price the market determines? A) Perfect competition. B) Oligopoly. C) Monopolistic competition. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. ← 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