This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 32 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Combination of two or more companies into a single firm A) Take over. B) Buy out. C) Merger. D) Horizontal merger. Show Answer Correct Answer: C) Merger. 2. In this market, one firm controls the market, there are very high barriers to entry, price makers, & there are no available substitutes A) Perfect Competition. B) Oligopoly. C) Monopoly. D) None of above. Show Answer Correct Answer: C) Monopoly. 3. Philip's Phantastic Pharmaceuticals (PPP), Inc. currently has a patent-and therefore a monopoly-on the market for a drug called spazoprolam. After PPP's patent expires and the market for spazoprolam becomes perfectly competitive, the price of spazoprolam will most likely ..... and the quantity sold will most likely ..... A) Fall; fall. B) Rise; rise. C) Rise; fall. D) Fall; rise. Show Answer Correct Answer: D) Fall; rise. 4. The public interests is A) The concerns of the public as a whole. B) The right to buy and sell goods. C) The right of individuals to have safe products. D) A property right guaranteed by law. Show Answer Correct Answer: A) The concerns of the public as a whole. 5. SSEMI3 b If you live in Augusta/Richmond County and do not have a well system, then you are on city water and sewer. This is an example of a A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 6. In monopolistic competition firms profit maximize where: A) Marginal revenue = Marginal cost. B) Marginal revenue = Average revenue. C) Marginal revenue = Total cost. D) Marginal revenue = Average cost. Show Answer Correct Answer: A) Marginal revenue = Marginal cost. 7. Reducing or eliminating government control of business is called A) Deregulation. B) Cease and desist. C) Disclosure. D) Discrimination. Show Answer Correct Answer: A) Deregulation. 8. Which of the following is the least competitive market structure? A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 9. Which of the following correctly orders market structures from least efficient to most efficient? (Keep in mind that all options may be inefficient.) A) Monopoly-oligopoly-monopolistic competition. B) Monopolistic competition-oligopoly-monopoly. C) Oligopoly-monopoly-monopolistic competition. D) Monopoly-mopolistic competition-oligopoly. Show Answer Correct Answer: A) Monopoly-oligopoly-monopolistic competition. 10. Follows these conditions:few sellers; high barriers to enter market; some control over the price; some differentiated products A) Perfect competition. B) Monopolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 11. The market for crude oil is an example of an oligopolistic market A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 12. A shared good/service that government builds because it would be impractical for an individual A) Public good. B) Private good. C) Market failure. D) Military good. Show Answer Correct Answer: A) Public good. 13. ..... affects BOTH quantity demanded and quantity supplied, as it causes movement ALONG the curve. A) Price. B) Savings. C) Entrepreneurship. D) Land. Show Answer Correct Answer: A) Price. 14. This allows an inventor exclusive rights to make and sell his or her invention. Other producers may apply for a license for a fee. A) Patience. B) Bill of Attainder. C) Patent. D) Mortgage. Show Answer Correct Answer: C) Patent. 15. Characteristics of equilibrium include A) Where supply and demand intersect. B) Where QS = QD. C) No shortage and no surplus. D) All of these. Show Answer Correct Answer: D) All of these. 16. What is 111-26 = A) 85. B) 137. C) 86. D) 95. Show Answer Correct Answer: A) 85. 17. Why are geographic monopolies common in small towns? A) Small towns can't afford police security for new shops. B) Small towns usually have just one seller of a given item. C) The residents of small towns vote against having new shops. D) The residents of small towns don't want jobs from new shops. Show Answer Correct Answer: B) Small towns usually have just one seller of a given item. 18. Sells Identical products A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect Competition. 19. If the cross-price elasticity between two commodities is 1.5, A) The two goods are normal goods. B) The two goods are substitutes. C) The two goods are luxury goods. D) The two goods are complements. Show Answer Correct Answer: B) The two goods are substitutes. 20. A system in which the government allocates goods and services using factors other than price A) Competitive Pricing. B) Regulation. C) Price Floor. D) Rationing. Show Answer Correct Answer: D) Rationing. 21. In long run equilibrium, a perfectly competitive firm will tend to earn ..... A) Zero economic profit. B) Negative economic profit. C) Negative accounting profit. D) Zero accounting profit. E) Positive economic profit. Show Answer Correct Answer: A) Zero economic profit. 22. Coke and Pepsi are the main producers and control the soda market. This is an example of: A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 23. How will an earthquake leading to the deaths of hundreds in a large town affect food supply from neighbouring towns? A) It will increase supply. B) It will stop supply. C) It will reduce supply. D) It will make supply constant. Show Answer Correct Answer: A) It will increase supply. 24. The expenses a new business must pay before it can begin to produce and sell goods A) Barrier to Entry. B) Collusion. C) Start-Up Costs. D) Price War. Show Answer Correct Answer: C) Start-Up Costs. 25. The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were all designed to ..... A) Ensure competition. B) Create public goods. C) Extend mortgages. D) Promote trusts. Show Answer Correct Answer: A) Ensure competition. 26. Advertising spent on differentiated products for monopolistically competitive firms is considered controversial in ..... A) Oligopolistic economies. B) Market-oriented economies. C) Closed market economies. D) None of above. Show Answer Correct Answer: B) Market-oriented economies. 27. Which of the following is an example of a barrier to entry in the airplane market? A) There are not enough sellers in the market. B) The high start-up costs and money needed to build a factory. C) Agreements among other airplane makers to keep prices high. D) None of above. Show Answer Correct Answer: B) The high start-up costs and money needed to build a factory. 28. He just died in Syria while America Spec Ops dogs chased him down. A) Abu Bakr al-Baghdadi. B) Jeff. C) Scooby Yabba Dabba Doo. D) Usman bin Laden. Show Answer Correct Answer: A) Abu Bakr al-Baghdadi. 29. Anything that hinders a business from entering the market A) Human Capital. B) Resource Labor. C) Barrier to Entry. D) None of above. Show Answer Correct Answer: C) Barrier to Entry. 30. The airwaves are filled with ads for different flavors of Doo-das. Each Doo-da isessentially the same, however the branding the different firms use has made themseem different. One firm markets "healthy Doo-das", another markets "chocolatecovered Doo-das", then there are the "Doo-das that are just for kids!" When going tothe store to buy your favorite flavor of Doo-da you notice that they are all essentiallythe same price, with very little variation between the brands, but some are a fewcents cheaper than others and they have been that way for years. On the news a fewyears back they ran a piece saying, "Doo-das are one of the easiest industries tobreak into with relatively few barriers to entry"How would you categorize the Doo-da market? A) Monopolistic Competition. B) Monopoly. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic Competition. ← 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