This quiz works best with JavaScript enabled. Home > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 98 (7 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a merger? A) When government no longer interferes in the market, letting it run with no restrictions. B) When a company joins with another company or companies to form a single firm. C) When there is an agreement of oligopoly members to set prices and production levels. D) When a company becomes the only efficient option given decreasing average costs. Show Answer Correct Answer: B) When a company joins with another company or companies to form a single firm. 2. 5 Characteristics of Pure Competition A) Monopoly. B) Perfect competition. C) Oligopoly. D) A Large numbers of buyers and sellers exist.Buyers and sellers deal in identical products.Buyers and sellers act independently.Buyers and sellers must be reasonably informed about the products for sale.Buyers and sellers must be free to enter, conduct or get out of business. Show Answer Correct Answer: D) A Large numbers of buyers and sellers exist.Buyers and sellers deal in identical products.Buyers and sellers act independently.Buyers and sellers must be reasonably informed about the products for sale.Buyers and sellers must be free to enter, conduct or get out of business. 3. What is NOT one of the five criteria for perfect competition? A) Large number of buyers and sellers. B) Identical products. C) Informed buyers and sellers. D) It is not free to enter and exit the market. Show Answer Correct Answer: D) It is not free to enter and exit the market. 4. In which economic system do individuals have the freedom to make their own economic decisions, but the government also plays a role in the allocation and distribution of resources? A) Mixed economy. B) Command economy. C) Traditional economy. D) Market economy. Show Answer Correct Answer: A) Mixed economy. 5. This market has the largest number of sellers: A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: A) Perfect competition. 6. Which type of market structure is the electricity industry? A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 7. For an industry to be perfectly competitive, what must exist? A) Many firms selling similar items. B) Many consumers wanting different items. C) Many firms selling different items. D) None of above. Show Answer Correct Answer: A) Many firms selling similar items. ← PreviousRelated 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