This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Exists when there are economies of scale A) Natural monopoly. B) Geographic monopoly. C) Technological monopoly. D) Government monopoly. Show Answer Correct Answer: A) Natural monopoly. 2. Predatory pricing A) Sets the market price below cost levels for the short term to drive out competitors. B) Sets the market price above cost levels for the short term to drive out competitors. C) Sets the market price below cost levels for the long term to drive out competitors. D) Sets the market price above cost levels for the long term to drive out competitors. Show Answer Correct Answer: A) Sets the market price below cost levels for the short term to drive out competitors. 3. Conspiring among business to set the prices of competing production A) Trust. B) Oligopoly. C) Pricing fixing. D) Market share. Show Answer Correct Answer: C) Pricing fixing. 4. SSEMI3 b Perfect competition is sometimes called "Pure" competition because: A) Products are identical and price is purely set by the market. B) A government agency sets price floors for all products in that market. C) A few large firms dominate the market with their slightly differentiated products. D) There is only one seller, so the competition is perfect. Show Answer Correct Answer: A) Products are identical and price is purely set by the market. 5. Strong interdependence exists in this market (meaning what one firm does the others will do as well): A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 6. What is market power and how does it affect competition? A) Market power is the ability of a firm to influence the market price of a good or service, and it affects competition by allowing the firm to set higher prices and restrict output. B) Market power is the ability of a firm to lower the market price of a good or service, and it affects competition by increasing consumer choices. C) Market power is the ability of a firm to collaborate with other firms to set market prices, and it affects competition by promoting lower prices for consumers. D) Market power is the ability of a firm to have no influence on the market price of a good or service, and it affects competition by promoting fair competition. Show Answer Correct Answer: A) Market power is the ability of a firm to influence the market price of a good or service, and it affects competition by allowing the firm to set higher prices and restrict output. 7. Rebels in Angola had this type of monopoly over diamonds because they controlled the mines A) Franchise. B) Resource monopoly. C) Patent/Copy Right. D) Natural Monopoly. Show Answer Correct Answer: B) Resource monopoly. 8. Which of the following is not an advantage of a sole proprietorship? A) Easy to form. B) Taxed only once. C) You retain all of the profits. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 9. What type of monopoly is based on ownership of a manufacturing method, process, or scientific advancement? A) Natural monopoly. B) Technological monopoly. C) Government monopoly. D) Geographic monopoly. Show Answer Correct Answer: B) Technological monopoly. 10. SSEMI3 b Comcast and Wow control basically all of the market share for cable internet in Martinez, GA. This is an example of a(n): A) Monopoly. B) Perfect Competiton. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Oligopoly. 11. Price movements at Disequilibrium when there is a shortage ..... ? A) Expansion along Demand, Contraction along Supply. B) Expansion along Demand & Supply. C) Contraction along Demand & Supply. D) Contraction along Demand, Expansion along Supply. Show Answer Correct Answer: A) Expansion along Demand, Contraction along Supply. 12. Antitrust laws promote competition. A) True. B) False. Show Answer Correct Answer: A) True. 13. Ideal market structure A) Predatory pricing. B) Nonprice Competition. C) Perfect Competition. D) Product Differentiation. Show Answer Correct Answer: C) Perfect Competition. 14. Under perfect competition, A) Products are similar but not identical. B) Numerous restrictions prevent firms from entering the market. C) No seller can sell a product above the prevailing market price. D) A single seller can affect price. Show Answer Correct Answer: C) No seller can sell a product above the prevailing market price. 15. Labor, Capital, Natural Resources A) Ethics. B) Gross Domestic Product (GDP). C) Factors of Production. D) Economics. Show Answer Correct Answer: C) Factors of Production. 16. Mammoth Inc. sells computers in a monopoly market.Which of the following is true about this market? A) The firm earns zero economic profit in the long run. B) There are no, or low, barriers to entry in this market. C) Price equals marginal revenue. D) The seller can charge any price they want. E) There is a single firm selling a product with no close substitutes. Show Answer Correct Answer: E) There is a single firm selling a product with no close substitutes. 17. Which of the following is NOT a characteristic of a monopoly? A) Barriers to entry. B) One buyer. C) One seller. D) A product without close substitutes. Show Answer Correct Answer: B) One buyer. 18. Monopolistic competition is characterized by A) A large number of firms.Easy entry into the industry. Differentiated products. B) A large number of firms.Easy entry into the industry. Similar products. Show Answer Correct Answer: A) A large number of firms.Easy entry into the industry. Differentiated products. 19. In this market, there is no entry possible: A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 20. Price elasticity of supply is the responsiveness of A) Demand to a change in price. B) Price to a change in supply. C) Quantity supplied to a change in price. D) Price to a change in supply. Show Answer Correct Answer: C) Quantity supplied to a change in price. 21. An agreement among firms to charge one price for the same good A) Cartel. B) Price discrimination. C) Collusion. D) Price fixing. Show Answer Correct Answer: D) Price fixing. 22. The Demand Curve has moved right. Where is the new equilibrium price and quantity? A) Lower, higher. B) Higher, lower. C) Higher, higher. D) Lower, lower. Show Answer Correct Answer: C) Higher, higher. 23. SSEMI3 The Board of Directors of a corporation is elected by who? A) Shareholders. B) CEO. C) Principal. D) None of the above. Show Answer Correct Answer: A) Shareholders. 24. The Organization for Petroleum Exporting Countries often uses their market power tobenefit themselves at the expense of the rest of the world. These 13 countriescontrol 73% of the world's oil reserves and 40% of total world oil production. Thenations meet annually to discuss how much oil they will produce that year and whothey will sell it to, which strongly determines the price of oil in the entire globaleconomy. In 1973 OPEC set an embargo on oil exports to the United States cripplingthe American economy.How would you characterize the oil market? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 25. Which of these isn't a condition of perfect competition? A) Many buyers and sellers. B) Identical products. C) Difficult entry and exit from market. D) None of above. Show Answer Correct Answer: C) Difficult entry and exit from market. 26. Division of customers into groups based on how much they will pay for a good A) Proportional payments. B) Price discrimination. C) Grouping. D) Price fixing. Show Answer Correct Answer: B) Price discrimination. 27. The benefit or satisfaction gained from using a good or a service is called A) Goods. B) Incentives. C) Utility. D) Producer. Show Answer Correct Answer: C) Utility. 28. Water has seen an increase in demand 8% this summer, while the price has decreased 12% A) .67 elastic. B) .67 inelastic. C) 1.5 elastic. D) 1.5 inelastic. Show Answer Correct Answer: B) .67 inelastic. 29. Many sellers, differentiated products A) Oligopoly. B) Perfect Competition. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 30. When a major car company lowers its prices, other car makers will probably A) Raise their prices. B) Maintain existing prices. C) Go out of business. D) Lower their prices. Show Answer Correct Answer: D) Lower their prices. ← 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