This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If Nike and Adidas merge, it would be a..... merger A) Insane. B) Vertical. C) Horizontal. D) Ladder. Show Answer Correct Answer: C) Horizontal. 2. A barrier to entry is any obstacle that makes it difficult for a new firm to enter a market. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. This market structure occurs when an industry has many businesses selling the same product A) Oligopoly. B) Monopolistic Competition. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 4. Which of the following is NOT true about monopolies? A) They have very limited political influence. B) They can become inefficient. C) They can lose money and be unprofitable. D) They may fail to innovate. Show Answer Correct Answer: A) They have very limited political influence. 5. When buying produce at the grocery store, many people shop around for the best deal, because when it comes down to it, an apple is an apple. This is an example of: A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect competition. 6. Why does the US government allow technological monopolies by protecting patents and copyrights? A) To promote perfect competition. B) To promote innovation. C) To help the wealthy stay on top. D) To create technological monopolies. Show Answer Correct Answer: B) To promote innovation. 7. How are people's inventions protected? A) Seals. B) Patents. C) Public franchise. D) Copyrights. Show Answer Correct Answer: B) Patents. 8. A business owner who prefers to maintain complete control of all business activities might consider structuring the business as a(n) A) General partnership. B) Sole proprietorship. C) Franchise. D) Corporation. Show Answer Correct Answer: B) Sole proprietorship. 9. Some economists call an industry a(n) ..... if the four largest businesses produce at least 70-80% of the output. This is a market controlled by a few. A) Oligopoly. B) Monopolistic competition. C) Pure competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 10. Which market structure has only one producer? A) Oligopoly. B) Perfect competition. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Monopoly. 11. Products that are identical are called A) Cartels. B) Collusions. C) Commodities. D) Capital. Show Answer Correct Answer: C) Commodities. 12. Which market structure involves selling "similar" products and only has a FEW firms? A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 13. Business decision to combine resources, ideas, and innovation A) Cartel. B) Merger. C) Trust. D) Collusion. Show Answer Correct Answer: B) Merger. 14. Ethan, Lily, and Noah are playing a game of 'Market Masters'. They are discussing about different market structures. Can you help them identify which market structure has a large number of buyers and sellers? A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: A) Perfect Competition. 15. Price fixing and collusion often occur in this type of market structure A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 16. -One seller-Complete barriers to market entry-No product differentiation, Which of the following is described by the characteristics listed above? A) Pure competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 17. A market structure in which one firm has a monopoly because of its location is a A) Government monopoly. B) Technological monopoly. C) Natural monopoly. D) Geographic monopoly. Show Answer Correct Answer: D) Geographic monopoly. 18. Which one IS one of the 4 market structures? A) Sole Proprietorship. B) Monopolistic Competition. C) Corporation. D) Market Economy. Show Answer Correct Answer: B) Monopolistic Competition. 19. What is a monopsony? A) Many buyers, one seller. B) One buyer & seller. C) Few buyers, many sellers. D) Many buyers & sellers. Show Answer Correct Answer: C) Few buyers, many sellers. 20. A primary reason for government regulation is to protect consumers. A) False. B) True. Show Answer Correct Answer: B) True. 21. Slight control over prices, affordable prices, but can be somewhat higher because of nonprice competition-they compete for customers this way, production is slightly below equilibrium, efficient production and companies, small profit! A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: A) Monopolistic Competition. 22. Mergers are regulated by the government in order to keep trusts from forming. A) False. B) True. Show Answer Correct Answer: B) True. 23. What is not part of perfect competition? A) Sellers cannot enter/ exit market easily. B) Few barriers of entry. C) Low prices. D) Buyer/ seller are well informed. Show Answer Correct Answer: A) Sellers cannot enter/ exit market easily. 24. Term for costs that change with production A) Marginal Cost. B) Variable Cost. C) Average Cost. D) Fixed Cost. Show Answer Correct Answer: B) Variable Cost. 25. In the long run, the PERFECT COMPETITION market will experience A) Economic profit. B) Supernormal profit. C) Normal profit. D) Economic loss. Show Answer Correct Answer: C) Normal profit. 26. Which of the following antitrust laws was first enacted? A) Robinson-Patman Act. B) Clayton Antitrust Act. C) Sherman Antitrust Act. D) Federal Trade Commission Act. Show Answer Correct Answer: C) Sherman Antitrust Act. 27. What is a monopoly market structure? A) Theoretical condition. B) Small firms. C) Single seller, selling a unique product. D) Large buyers and sellers. Show Answer Correct Answer: C) Single seller, selling a unique product. 28. A monopolistically competitive firm will profit maximize using the marginal principle much like a(n) ..... A) Monopoly. B) Perfectly competitive firm. C) Oligopoly. D) None of above. Show Answer Correct Answer: A) Monopoly. 29. A market structure that does not meet the conditions of perfect competition A) Imperfect competition. B) Pure competition. C) Market place. D) Oligopoly. Show Answer Correct Answer: A) Imperfect competition. 30. In order to shop at a cooperative, you must be ..... A) A member. B) A retired veteran. C) Interviewed and hired. D) Financially stable. Show Answer Correct Answer: A) A member. Next →Related QuizzesMarket Dynamics QuizzesEconomics QuizzesMarket Structures Quiz 2Market Structures Quiz 3Market Structures Quiz 4Market Structures Quiz 5Market Structures Quiz 6Market Structures Quiz 7Market Structures Quiz 8Market Structures Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books