This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 39 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Laws that encourage competition in the marketplace A) Patent laws. B) Anti-collusion laws. C) Reduced impact fees. D) Antitrust laws. Show Answer Correct Answer: D) Antitrust laws. 2. There are four ways to compete without changing the price of your product. Which of these is NOT a way to participate in the non-price competition? A) Location. B) Yearly sales. C) Advertising. D) Physical characteristics. Show Answer Correct Answer: B) Yearly sales. 3. What is a corporation? A) A government agency. B) A legal entity that is separate and distinct from its owners. C) A non-profit organization. D) A type of partnership. tagsSSEMI3. Show Answer Correct Answer: B) A legal entity that is separate and distinct from its owners. 4. Selling a product below cost to drive competitors out of the market A) Price fixing. B) Collusion. C) Price adjusting. D) Predatory pricing. Show Answer Correct Answer: D) Predatory pricing. 5. The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise and lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia? A) Perfect competition. B) Monopolistic competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 6. A market structure in which many producers supply an identical product. (This is the most efficient structure) A) Monopoly. B) Market Failure. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect Competition. 7. Which market structure do we encounter most often in our daily lives? A) Monopolistic competition. B) Monopoly. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopolistic competition. 8. A firm wishes to acquire some of the consumer surplus its customers currently enjoy. How might it achieve this? A) By charging a price that maximises revenue. B) By reducing operating costs. C) By introducing price discrimination. D) By taking advantage of economies of scale. Show Answer Correct Answer: C) By introducing price discrimination. 9. Follows these conditions:one seller; complete barriers to enter market; complete control of the price; no differentiated products A) Oligopoly. B) Monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: B) Monopoly. 10. What market form can a single firm cause change in output, sales, and price? A) Perfect (Pure) Competition. B) Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 11. Which of the following is an example of a public good? A) Shopping mall. B) Highway. C) Professional sporting event. D) Factory. Show Answer Correct Answer: B) Highway. 12. What is the main characteristic of economies of scale? A) Falling average costs as production increases. B) Increasing average costs as production increases. C) No marginal costs for operation. D) Low start-up costs act as entry barriers. Show Answer Correct Answer: A) Falling average costs as production increases. 13. An oil driller, oil refinery, and gas company merge ..... this is a ..... merger A) Monopolistic. B) Vertical. C) Inappropriate. D) Horizontal. Show Answer Correct Answer: B) Vertical. 14. Nonprice competition is most important in which of the following markets? A) Monopolistic competition. B) Trusts. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) Monopolistic competition. 15. What is meant by a "market failure" ? A) It is the government's inability to provide enough employment opportunities. B) It is the natural scarcity of resources to meet society's needs and wants. C) It refers to the imperfections of all market structures, except the perfectly competitive market. D) It refers to the inefficient use of resources due to a lack of competition or the presence of externalities. Show Answer Correct Answer: D) It refers to the inefficient use of resources due to a lack of competition or the presence of externalities. 16. How many hot dogs will suppliers supply at $ 2/hot dog? A) 300. B) 100. C) 400. D) 200. Show Answer Correct Answer: D) 200. 17. A group of firms combined in order to reduce competition in an industry A) Limited Partnership. B) Oligopoly. C) Franchise. D) Trust. Show Answer Correct Answer: D) Trust. 18. At market equilibrium there is A) A shortage. B) Excess demand. C) The same amount of supply and demand. D) A surplus. Show Answer Correct Answer: C) The same amount of supply and demand. 19. A firm operating in a monopolistically competitive market can earn economic profits in ..... A) The short-run, but not in the long run. B) The long-run, but not in the short run. C) Both the short run and the long run. D) Neither the short run nor the long run. Show Answer Correct Answer: A) The short-run, but not in the long run. 20. What is a monopolistic competition? A) A market structure characterized by a large number of well-informed independent buyers and sellers who exchange identical products. B) The market structure that has all the conditions of perfect competition except for identical products. C) A market structure in which a few very large sellers dominate the industry. D) A market structure with only one seller of a particular product. Show Answer Correct Answer: B) The market structure that has all the conditions of perfect competition except for identical products. 21. Noah, Avery, and Ethan are members of a small group of companies that dominate the smartphone market. They have been accused of illegally setting prices and production levels. What is this practice called? A) Price fixing. B) Price war. C) Cartels. D) Collusion. Show Answer Correct Answer: A) Price fixing. 22. Advertising is most likely to be used in which kind of market? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Perfect price discriminating monopoly. E) Monopoly. Show Answer Correct Answer: A) Monopolistic competition. 23. Which of the following may be a negative externality resulting from the expansion of a local airport? A) People near the airport lose value in their house and deal with traffic. B) There is a rise in retail in the area. C) Additional employment is needed at the airport. D) There is an unexpected benefit for a third party not involved in the expansion. Show Answer Correct Answer: A) People near the airport lose value in their house and deal with traffic. 24. How many companies are there in a monopoly? A) 1. B) 2-5. C) Many. D) None of above. Show Answer Correct Answer: A) 1. 25. The government takes part in the US economy to A) Encourage competition and fair play. B) Reduce the effects of imperfect competition. C) Regulate industries that serve the public good. D) All of these are correct. Show Answer Correct Answer: D) All of these are correct. 26. Under which market structure can two firms work together to set high prices? A) Monopolistic competition. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 27. If society does not need more than one company to create a product (for example:electric companies), this is a ..... monpoly. A) Geographic. B) Natural. C) Technological. D) Government. Show Answer Correct Answer: B) Natural. 28. In which circumstance will a firm cease production in the short run? A) It makes a profit that is less than its total variable costs. B) It makes a profit that is less than its total fixed costs. C) Its average revenue is less than its average cost. D) Its average revenue is less than its average variable cost. Show Answer Correct Answer: D) Its average revenue is less than its average variable cost. 29. Paul goes to the clothing store to buy a new t-shirt, for which he is willing to pay $ 10. He finds the perfect t-shirt that costs $ 10. At the register he learns it is 50% off. Paul's consumer surplus is: A) $ 15. B) $ 5. C) $ 10. D) $ 0. Show Answer Correct Answer: B) $ 5. 30. What is a natural monopoly? A) A market that runs more efficient with only a few firms. B) A market that runs more efficiently with as many firms as possible. C) A market that runs more efficiently with only one firm. D) Any market that deals with natural resources and where have many firms is still efficient. Show Answer Correct Answer: C) A market that runs more efficiently with only one firm. ← 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