This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Kinsley bought a new house. The only supplier of electrical power to her new home is Georgia Power. This is an example of a ..... monopoly. A) Technological. B) Government. C) Geographic. D) Natural. Show Answer Correct Answer: D) Natural. 2. Federal Trade Commission Act A) Federal law that established the Federal Trade Commission (FTC) and regulates unfair methods of competition and deceptive practices. B) Federal law that established the Federal Trade Commission (FTC) and regulates interstate commerce. C) Federal law that established the Federal Trade Commission (FTC) and enforces antitrust laws. D) The FTC has the power to order a company to cease and desist unfair business practices. Show Answer Correct Answer: D) The FTC has the power to order a company to cease and desist unfair business practices. 3. Pepsi, Coca Cola A) Oligopoly. B) Monopoly. C) Perfect Competition. D) None of above. Show Answer Correct Answer: A) Oligopoly. 4. 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 TOTAL revenue if it instead produced and sold 4 units of output? A) $ 32. B) $ 2. C) $ 8. D) $ 64. Show Answer Correct Answer: A) $ 32. 5. Why are wants insatiable? A) They are endless. B) Resources are unlimited. C) They are different from needs. D) Only services can satisfy them. Show Answer Correct Answer: A) They are endless. 6. Explain the concept of price taker in perfect competition. A) A firm that has no influence over the market price and must accept the price set by the market. B) A firm that can set its own price in the market. C) A firm that has complete control over the market price. D) A firm that can easily manipulate the market price. Show Answer Correct Answer: A) A firm that has no influence over the market price and must accept the price set by the market. 7. Economic profit is calculated by taking: A) Total Revenue-Fixed Costs. B) Total Revenue-Explicit Costs. C) Explicit Costs * Total Revenue. D) Total Revenue-(Explicit + Implicit Costs). Show Answer Correct Answer: D) Total Revenue-(Explicit + Implicit Costs). 8. Are allowed if the one sellers has a patent, is the government, or is not purposefully blocking competition A) Monopoly. B) Monopolistic comeptition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 9. Which markets compete in non-price competition? A) Monopolistic competition and oligopoly. B) Monopoly and monopolistic competition. C) Oligopoly and perfect competition. D) Perfect competition and monopolistic competition. Show Answer Correct Answer: A) Monopolistic competition and oligopoly. 10. Beauty salons and clothing stores are likely A) Oligopolies. B) Perfectly Competitive. C) Monopolies. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 11. How does an oligopoly control price? A) By working together to set prices. B) Through product differentiation. C) It has no control over price. D) By being the only producer of a good. Show Answer Correct Answer: A) By working together to set prices. 12. A market in which producers sell similar products, but not identical? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: A) Monopolistic competition. 13. All sellers in the perfect competition are ..... sellers. A) Medium. B) Large. C) Small. D) Extra large. Show Answer Correct Answer: C) Small. 14. In a monopolistic market, how much market power does the producer have? A) No market power. B) Complete control. C) Shared control. D) Limited control. Show Answer Correct Answer: B) Complete control. 15. Blueberry producers in Idaho are perfectly competitive, the market demand curve for blueberries is A) Nonexistent. B) Downward sloping. C) Horizontal. D) Upward sloping. Show Answer Correct Answer: B) Downward sloping. 16. In this market structure there is only one seller with a unique product A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 17. Which type of market structure is being described in the following quote? "To make matters worse, health care consolidation has led to the absence of any choice at all for consumers. Another study by Harvard University on hospital markets found that between 2007-2017, 11.2 million Americans were served by just a single hospital system." A) Monopoly. B) Sole Proprietorship. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 18. Benefit of Perfect Competition A) Any Producer can enter market. B) Competition Lowers Prices. C) Both. D) Neither. Show Answer Correct Answer: C) Both. 19. Barriers to entry = A) Perfect competition. B) Make it difficult for new firms to enter the market. C) Factors of production. D) None of above. Show Answer Correct Answer: B) Make it difficult for new firms to enter the market. 20. In an oligopoly, when a few producers join forces publicly to control pricing and production levels (btw:it's illegal in the US) A) COLLUSION. B) FEDERATION. C) TRUST. D) CARTEL. Show Answer Correct Answer: D) CARTEL. 21. Collusion is legal in the U.S.? A) False. B) True. Show Answer Correct Answer: A) False. 22. Sweezy' s Model explains the concept of price rigidity relating to the following market forms A) Oligopolistic Market. B) Monopolistic Competition. C) Monopoly Market. D) Perfect Competition Market. Show Answer Correct Answer: A) Oligopolistic Market. 23. What controls prices in Perfect Competition? A) Sellers. B) Supply and Demand. C) Government. D) Advertisers. Show Answer Correct Answer: B) Supply and Demand. 24. Public Disclosure A) Release sale dates. B) List job openings. C) Requires businesses to reveal certain information to the public. Stock exchangeLabels on foodBank reports filed with the Federal Reserve System. D) List recalls. Show Answer Correct Answer: C) Requires businesses to reveal certain information to the public. Stock exchangeLabels on foodBank reports filed with the Federal Reserve System. 25. Multinational Corporations operate in other countries and are also known as ..... A) Transnational Corporation. B) Stifled Corporation. C) Expanded Corporation. D) Transcontinental Corporation. Show Answer Correct Answer: A) Transnational Corporation. 26. What kind of graph is this? A) Multiple bar chart. B) Coloured bar chart. C) Component bar chart. D) Histogram. Show Answer Correct Answer: A) Multiple bar chart. 27. Guy and his brothers want to start a plumbing business together. What is an advantage of organizing the business as a partnership rather than a corporation? A) Partnerships have limited legal liability. B) Partnerships can issue stock to raise money. C) Partnerships can be started up quickly. D) Partnerships need a legal charter to begin. Show Answer Correct Answer: C) Partnerships can be started up quickly. 28. SSEMI3 Mr. Coleman's lemonade business failed and he is in debt for over $ 300K. He has to sell his house and live under a garbage bag. This is an example of his A) Poor decision making. B) Corporate directors. C) Unlimited liability. D) Limited liability. Show Answer Correct Answer: C) Unlimited liability. 29. What is the main difference between perfect competition and monopolistic competition? A) The main difference is that in perfect competition, there are many small firms selling identical products, while in monopolistic competition, there are many firms selling similar but differentiated products, and they have some degree of market power. B) The main difference is that in perfect competition, there are only a few large firms, while in monopolistic competition, there are many small firms. C) The main difference is that in perfect competition, there is no product differentiation, while in monopolistic competition, there is no market power. D) The main difference is that in perfect competition, there are barriers to entry, while in monopolistic competition, there are no barriers to entry. Show Answer Correct Answer: A) The main difference is that in perfect competition, there are many small firms selling identical products, while in monopolistic competition, there are many firms selling similar but differentiated products, and they have some degree of market power. 30. Business model in which debt is shared between two or more people A) Corporation. B) Sole proprietorship. C) Partnership. D) None of above. Show Answer Correct Answer: C) Partnership. ← 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