This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT a barrier to entry? A) Start up cost. B) Education/training. C) Internet. D) Technology. Show Answer Correct Answer: C) Internet. 2. What graph usually present values in degrees? A) Flow chart. B) Pie graph. C) Bar chart. D) Histogram. Show Answer Correct Answer: B) Pie graph. 3. TRUE or FALSE-The Franchisee can benefit from using the brand name of the Franchise, as well as advertising and marketing A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 4. What is the market structure characterized by a single firm dominating the market? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 5. A structure with a small number of businesses selling the same or similar products A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 6. What are the barriers to entry in an oligopoly market structure? A) The barriers to entry in an oligopoly market structure include high start-up costs, economies of scale, product differentiation, and control over essential resources. B) Limited competition and low economies of scale. C) No product differentiation and lack of control over essential resources. D) Low start-up costs and easy market entry. Show Answer Correct Answer: A) The barriers to entry in an oligopoly market structure include high start-up costs, economies of scale, product differentiation, and control over essential resources. 7. Exists when many sellers offer similar, but not standardized products A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 8. Colin's KTV is one of the many entertainment businesses in the country and he has a downward sloping demand curve. Which market structure is this? A) Monopolistic Competition. B) Monopoly. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic Competition. 9. The most recent antitrust legislation tried to stop ..... A) Price discrimination. B) Predatory Pricing. C) Mergers. D) Trusts. Show Answer Correct Answer: C) Mergers. 10. Yaz produces nails at a cost of $ 200 per ton. If he sells nails for $ 350 per ton, his producer surplus per ton is A) $ 150. B) $ 200. C) $ 550. D) $ 350. Show Answer Correct Answer: A) $ 150. 11. Which of the following characteristics does not match the characteristics of a monopolistic competition market? A) The number of producers is large and the size of the companies is small. B) Determination of maximum profit at the output level where MC = MR. C) Companies need advertising media. D) Companies are faced with a horizontal demand curve. E) The company as a price maker. Show Answer Correct Answer: A) The number of producers is large and the size of the companies is small. 12. What is not a characteristic of monopolistic competition? A) Products are identical. B) Easy market entry. C) Similar products sold within the same price range. D) Many sellers. Show Answer Correct Answer: A) Products are identical. 13. The shareholders may receive a part of the company's annual profit, if there is one, in the form of a dividend. A) True. B) False. Show Answer Correct Answer: A) True. 14. SSEMI3 b Which market structure, other than a monopoly, would have the highest barrier to entry? A) Oligopoly. B) Pure Competition. C) Monopolistic Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 15. A firm with market power engages in price discrimination to: A) Earn a higher profit. B) Increase consumer surplus. C) Decrease deadweight loss. D) Make its demand more elastic. Show Answer Correct Answer: A) Earn a higher profit. 16. What is the demand curve faced by a firm in monopolistic competition? A) Perfectly inelastic. B) Downward sloping. C) Perfectly elastic. D) Horizontal. Show Answer Correct Answer: B) Downward sloping. 17. Collusion among firms in an industry is most likely under conditions of A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 18. Average costs of production fall as output of the good or service increases. A) Cartel. B) Collusion. C) Barriers to entry. D) Economies of scale. Show Answer Correct Answer: D) Economies of scale. 19. A market structure in which only one seller sells a product for which there are no close substitutes A) Incentives. B) Monopoly. C) Interest Rates. D) None of above. Show Answer Correct Answer: B) Monopoly. 20. Why must stockholders pay taxes on dividends? A) Dividends always get charged capital gains tax. B) State taxes are mandatory. C) Profit from dividends is a form of income and stockholders must pay income tax on profits. D) Stock is a share representing owned portion of a corporation. Show Answer Correct Answer: C) Profit from dividends is a form of income and stockholders must pay income tax on profits. 21. What is the relationship between total revenue and marginal revenue in a monopoly market? A) They are always negative. B) They can be positive or negative. C) They are always equal. D) They are always positive. Show Answer Correct Answer: B) They can be positive or negative. 22. Monopolistic competition is ..... and a good example would be ..... A) When many firms compete with differentiated products, gasoline. B) When many firms compete with differentiated products, toothpaste. C) When many firms compete with unique products, electricity. D) None of above. Show Answer Correct Answer: B) When many firms compete with differentiated products, toothpaste. 23. What is a characteristic of a monopolistic competitive market? A) Products are identical. B) Producers have complete control over price. C) Entry into the industry is easy. D) There is only one producer. Show Answer Correct Answer: C) Entry into the industry is easy. 24. If a major car company such as Ford lowers their prices, what are other car companies likely to do? A) Maintain their current prices. B) Go out of business. C) Raise their prices. D) Lower their prices. Show Answer Correct Answer: D) Lower their prices. 25. Which business organization type is difficult to establish? A) Booster Club. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: B) Corporation. 26. Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies do not have control over the price and there are low barriers to entry. A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic competition. 27. What is the main characteristic of a monopoly market structure? A) The main characteristic of a monopoly market structure is that the market is shared by some industries. B) The main characteristic of a monopoly market structure is that there are many sellers in the market. C) The main characteristic of a monopoly market structure is that there is one seller or producer in the market, with no perceived close substitutes for the product or service. D) The main characteristic of a monopoly market structure is that the products have many close substitutes. Show Answer Correct Answer: C) The main characteristic of a monopoly market structure is that there is one seller or producer in the market, with no perceived close substitutes for the product or service. 28. Which market structure includes McDonalds and Hungry Jacks? A) Monopolistic Competition. B) Oligopoly. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Monopolistic Competition. 29. Which is NOT a characteristic of perfect competition? A) Numerous buyers and sellers. B) Standardized product. C) Differentiated product. D) Independent buyers and sellers. Show Answer Correct Answer: C) Differentiated product. 30. A group of corporations run by a single board of directors A) Trust. B) Company. C) Corpoation. D) Conglomerate. Show Answer Correct Answer: A) Trust. ← 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