This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 24 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All of the following are characteristics of a perfectly competitive firm except for A) Firms are price takers. B) There are many firms in the market. C) Products are differentiated. D) Very low barriers to entry and exit. Show Answer Correct Answer: C) Products are differentiated. 2. If you live outside the city of Tucson, there are many firms who collect trash and all have similar prices. Which market structure is this? A) Monopolistic competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 3. If the entire output of a market is produced by a single seller, the firm A) Is a monopoly. B) Faces perfectly inelastic demand. C) Can charge any price it wants and not lose customers. D) Is producing a new product. Show Answer Correct Answer: A) Is a monopoly. 4. Cartels are difficult to operate for which of the following reasons? A) They are illegal worldwide. B) Firms in a cartel are likely to lose money. C) They work only if members keep to their agreed output. D) The products are perfectly competitive. Show Answer Correct Answer: C) They work only if members keep to their agreed output. 5. Businesses, individuals, and the government have a hand in our economy. A) Socialism. B) Free-Market. C) Mixed-Economy. D) Communism. Show Answer Correct Answer: C) Mixed-Economy. 6. This is the most difficult market structure to enter based on the number of producers and high barriers to entry A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 7. What is a price taker? A) A consumer who accepts different prices from different firms. B) A perfectly competitive firm. C) A firm that cannot influence the market price. D) None of above. Show Answer Correct Answer: C) A firm that cannot influence the market price. 8. If a person gets a patent on a product that product is in which market structure? A) Monopolistic Competition. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 9. This type of business is owned by two or more people and has unlimited liability. A) Franchise. B) Partnership. C) Corporation. D) Sole Proprietorship. Show Answer Correct Answer: B) Partnership. 10. Which market structure is characterized by a small number of large firms dominating the market? A) Perfect Competition. B) Oligopoly. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: B) Oligopoly. 11. Each below is an example of an Oligopoly except ..... A) Many Buyers. B) Lots of freedom to enter or exit the market. C) Few Sellers. D) More control of Prices. Show Answer Correct Answer: B) Lots of freedom to enter or exit the market. 12. How many companies are there in a perfect competition? A) 1. B) 2-5. C) Many. D) None of above. Show Answer Correct Answer: C) Many. 13. What do patents and copyrights create? A) Perfect competition. B) Temporary monopolies. C) Natural Monopolies. D) Differentiated competition. Show Answer Correct Answer: B) Temporary monopolies. 14. To maximize profit, firms in all market structures produce the quantity of output at which ..... A) Total revenue equals marginal cost. B) Average revenue equals average cost. C) Marginal revenue equals marginal cost. D) Total revenue equals total cost. E) Marginal revenue equals total cost. Show Answer Correct Answer: C) Marginal revenue equals marginal cost. 15. Choose the example that goes best with a monopoly. A) Electricity. B) Cars. C) Produce. D) Fast Food. Show Answer Correct Answer: A) Electricity. 16. This market structure is most beneficial to consumers A) Oligopoly. B) Perfect Competition. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: B) Perfect Competition. 17. What is an extreme case of market structure? A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: C) Monopoly. 18. Market where competition is inconvenient and impractical. Efficiency is best achieved by a single seller. A) Monopoly. B) Natural Monopoly. C) Technical Monopoly. D) Geographic Monopoly. Show Answer Correct Answer: B) Natural Monopoly. 19. What is occurring when quantity demanded is greater than quantity supplied? A) Equilibrium and price is equal. B) Surplus and price is too low. C) Shortage and price is too high. D) Shortage and price is too low. Show Answer Correct Answer: D) Shortage and price is too low. 20. Which of the following is NOT an example of a franchise? A) Wendy's. B) 7-11 Stores. C) McDonalds. D) Urgent care. Show Answer Correct Answer: D) Urgent care. 21. Robinson-Putman Act A) Allowed stores to sell at whatever price. B) Outlawed the practice of offering special prices to certain customers only. The law was aimed at national organizations and chain stores. C) Stores could set prices. D) Price fixing. Show Answer Correct Answer: B) Outlawed the practice of offering special prices to certain customers only. The law was aimed at national organizations and chain stores. 22. The most extreme version of imperfect competition is A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 23. An attempt by a seller in monopolistic competition to convince buyers that its product is different and superior to nearly identical products of competitors A) Advertising. B) Product Differentiation. C) Zoning. D) Patent. Show Answer Correct Answer: B) Product Differentiation. 24. Which market structure works the best, based on:price, efficiency & production? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 25. Which of the following questions would be most helpful in determining the market structure of a specific market? A) How many people want to buy?. B) How similar are the products?. C) How are the corporations organized?. D) How far are goods shipped?. Show Answer Correct Answer: B) How similar are the products?. 26. Many (Most) sellers, Identical products A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 27. Which of the following have limited life? A) Sole proprietorship. B) Partnership. C) Corporation. D) Sole proprietorship and partnership. E) Corporation and sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship and partnership. 28. What is the underlying mechanism which explains why a good does not become a private one? A) Free Rider Problem. B) Tragedy of the Commons. C) Positive Externalities. D) Negative Externalities. Show Answer Correct Answer: A) Free Rider Problem. 29. A natural gas producer buys a company that owns natural gas pipelines that transport gas to major urban areas. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: B) Vertical. 30. ..... is the study of economics on a small scale. A) Macroeconomics. B) Keynesian Economics. C) Home Economics. D) Microeconomics. Show Answer Correct Answer: D) Microeconomics. ← 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