This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Unlike perfect competition, a monopolist can make abnormal profits in the long run. A) False. B) True. Show Answer Correct Answer: B) True. 2. The major focus of sellers in this market is branding and marketing A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic Competition. 3. Oligopolistic markets would often be under close monitoring by the government to prevent collusion. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 4. Why is a monopoly able to charge a lower price and produce a higher output level than perfect competition? A) A monopoly is a price setter. B) A monopoly is able to reap economies of scale. C) There are high barriers to entry in a monopoly. D) A monopoly is able to earn economic profits. Show Answer Correct Answer: B) A monopoly is able to reap economies of scale. 5. What is the frequency of a variable? A) The number of times it reappears in a distribution. B) The number of times it is used after a distribution. C) The number of times it does not appear in a distribution. D) The number of times it shows on a line graph. Show Answer Correct Answer: A) The number of times it reappears in a distribution. 6. A competitive market is characterized by A) A large number of sellers and buyers. B) Diverse products. C) Sellers acting together to set prices. D) Uninformed buyers and sellers. Show Answer Correct Answer: A) A large number of sellers and buyers. 7. Mason, Grace, and Ava started a lemonade stand in their neighborhood, which is a perfectly competitive market. What determines the price that they can charge for a glass of lemonade? A) The intersection of the neighborhood's demand for lemonade and their supply. B) Their desired profit margin. C) The government regulations. D) The cost of producing the lemonade. Show Answer Correct Answer: A) The intersection of the neighborhood's demand for lemonade and their supply. 8. This was put in to place that allows the government to control and regulate monopolies. A) Deregulation laws. B) Collusion. C) Sherman Anti-Trust Act. D) Regulation laws. Show Answer Correct Answer: C) Sherman Anti-Trust Act. 9. Which of the following is an example of perfect competition? A) Bananas. B) Running shoes. C) Public water. D) Grocery stores. Show Answer Correct Answer: A) Bananas. 10. Demand is almost always more elastic at higher prices and less elastic at lower prices. A) False. B) True. Show Answer Correct Answer: B) True. 11. Columbia Tires and Pacific Tires together control 75% of the tire market in the country. What would this be? A) A monopoly. B) A perfect competition. C) A monopolistic competition. D) An oligopoly. Show Answer Correct Answer: D) An oligopoly. 12. Suppose a firm in a perfectly competitive market produces and sells 8 units of output and has a marginal revenue of $ 8. What would be the firm's MARGINAL revenue if it instead produced and sold 4 units of output? A) $ 64. B) $ 8. C) $ 32. D) $ 2. Show Answer Correct Answer: B) $ 8. 13. What does liability mean? A) Legal representation. B) Trustworthiness. C) Ability to lie. D) Legal responsibility. Show Answer Correct Answer: D) Legal responsibility. 14. AN EXAMPLE OF MONOPOLISTIC COMPETITION? A) CEREAL. B) FIDEO SOUP. C) SOAP. D) APPLE IOS. Show Answer Correct Answer: D) APPLE IOS. 15. Car producers are an example of A) Oligopoly. B) Monopolistic competition. C) Pure / perfect competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 16. Which of these are most likely to compete in a monopolistic competitive market? A) Furniture stores. B) Jewelry stores. C) Makeup stores. D) All of these are likely to be in monopolistically Competitive markets. Show Answer Correct Answer: D) All of these are likely to be in monopolistically Competitive markets. 17. Which of the following is an example of a co-operative? A) Costco. B) Walmart. C) Meijer. D) Target. Show Answer Correct Answer: A) Costco. 18. SSEMI3 b IN which market structure do sellers have virtually no control over price? A) Oligopoly. B) Monopolistic competition. C) Pure competition. D) Monopoly. Show Answer Correct Answer: C) Pure competition. 19. Impossible to Enter Market A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: B) Monopoly. 20. Product differentiation refers to A) Different prices for the same good. B) Different goods that have identical prices. C) Differences among goods in a market that make them close, but not perfect substitutes for each other. D) Markets that differ from industries because their goods are essentially different. E) The firm's ability to create different goods while using the same technology and resources. Show Answer Correct Answer: C) Differences among goods in a market that make them close, but not perfect substitutes for each other. 21. Both labor and management agree to talk to a third party and both sides must agree to the decision is a/an A) Mediation. B) Third party negotiation. C) Strike. D) Arbitration. Show Answer Correct Answer: D) Arbitration. 22. In a monopolistic competition, sellers can market their products differently from other sellers hence, they have some control over the price of the product. A) True. B) False. Show Answer Correct Answer: A) True. 23. Definition:Barriers to Entry A) The sole supplier of a product with no close substitutes. B) The ability of a firm to raise its price without losing all sales to rivals. C) Restrictions on the entry of new firms into an industry. D) A product that is identical across sellers, such as a bushel of wheat. Show Answer Correct Answer: C) Restrictions on the entry of new firms into an industry. 24. A merger between for or more companies producing or marketing different/unrelated products is referred as a(n) ..... A) Vertical merger. B) Corporation. C) Conglomerate. D) Horizontal merger. Show Answer Correct Answer: C) Conglomerate. 25. When management doesn't allow the workers to work until an agreement is reached A) Market failure. B) Court injunction. C) Lockout. D) Boycott. Show Answer Correct Answer: C) Lockout. 26. What is price mechanism? A) The interaction between demand and supply. B) The constant increase in price. C) The constant decrease in price. D) The theory of demand and supply. Show Answer Correct Answer: A) The interaction between demand and supply. 27. A corporation is a business for which ownership is divided into shares or stocks that may be bought and sold through a stock exchange. A) True. B) False. Show Answer Correct Answer: A) True. 28. The ability to produce more of a product than another country using the same resources A) Imports. B) Comparative advantage. C) Exports. D) Absolute advantage. Show Answer Correct Answer: D) Absolute advantage. 29. In a market that is in Perfect Competition, you would normally find ..... A) Few barriers to entry-easy to enter/exit the market. B) Difficulty in entering the market. C) Government regulations restricting new producers. D) High taxes and fees making it too expensive to enter. Show Answer Correct Answer: A) Few barriers to entry-easy to enter/exit the market. 30. The selling environment has ..... basic characteristics. A) Five. B) Seven. C) Three. D) None of above. Show Answer Correct Answer: C) Three. ← 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