This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 40 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market structure has the least competition in the marketplace? A) Monopolistic Competition. B) Perfect Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 2. Samuel, Emma, and Grace are discussing market power in their economics class. Can you help them understand what market power is? A) The ability of a firm or a group of firms to influence the price and output in a market. B) The ability of a firm or a group of firms to control the supply and demand in a market. C) The ability of a firm or a group of firms to collaborate and set prices in a market. D) The ability of a firm or a group of firms to maximize profits in a market. Show Answer Correct Answer: A) The ability of a firm or a group of firms to influence the price and output in a market. 3. Clothing would most closely be associated with which of the following markets? A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 4. This market structure is when on industry is controlled by a handful of companies A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 5. Market in which a single seller exercises exclusive or nearly exclusive control over a particular good or service. A) Monopoly. B) Natural Monopoly. C) Natural Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 6. When a monopoly participates in "predatory prices" prices will go A) Down. B) Up. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Down. 7. In which market structure is each firm's demand perfectly elastic? A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 8. What is the equation for total revenue in a monopoly market? A) TR = p * q. B) TR = p + q. C) TR = p-q. D) TR = p / q. Show Answer Correct Answer: A) TR = p * q. 9. A product that consumers see as the same, regardless of the producer A) Differentiated product. B) Similar product. C) Standardized product. D) None of above. Show Answer Correct Answer: C) Standardized product. 10. Which of the following factors contribute to market failure? A) Adequate competition. B) Knowledge of prices and opportunities. C) Mobility of resources. D) Inadequate competition. Show Answer Correct Answer: D) Inadequate competition. 11. A factor that makes it difficult for new firms to enter a market A) Barriers to entry. B) Perfect competition. C) Start up costs. D) Imperfect competition. Show Answer Correct Answer: A) Barriers to entry. 12. What is the law in a city that designates separate areas for residency and business? A) Land area laws. B) Zoning laws. C) City ordinance law. D) Industrial business license. Show Answer Correct Answer: B) Zoning laws. 13. What is a characteristic of a monopolistic market? A) There is only one producer. B) Entry into the industry is easy. C) Producers have complete control over price. D) Products are identical. Show Answer Correct Answer: A) There is only one producer. 14. The orange sellers in a Mexican mercado are in what market structure? A) Monopoly. B) Perfect competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Perfect competition. 15. The market structure that exists when there are many small businesses selling one standardized product A) Imperfect competition. B) Monopoly. C) Pure competition. D) Pure market. Show Answer Correct Answer: C) Pure competition. 16. Which of the following lists shows the types of market ordered from highest to lowest price? A) Perfect competition, oligopoly, monopoly. B) Oligopoly, perfect competition, monopoly. C) Monopoly, perfect competition, oligopoly. D) Monopoly, oligopoly, perfect competition. E) Perfect competition, monopoly, oligopoly. Show Answer Correct Answer: D) Monopoly, oligopoly, perfect competition. 17. A(n) ..... monopoly is a market that runs most efficiently when one large firm provides that service or good. A) Government. B) Industrial. C) Natural. D) Franchise. Show Answer Correct Answer: C) Natural. 18. Ethan, Noah, and Daniel are discussing market structures. They come across the term 'monopoly'. What is a monopoly? A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service. B) A monopoly is a market structure in which companies have equal control over a particular product or service. C) A monopoly is a market structure in which multiple companies have control over a particular product or service. D) A monopoly is a market structure in which a single company has control over multiple products or services. Show Answer Correct Answer: A) A monopoly is a market structure in which a single company or entity has exclusive control over a particular product or service. 19. If a firm in monopolistic competition is incurring losses in the short run, then they should only shutdown entirely if which of the following is true? A) P < AVC. B) P < ATC. C) TR < AVC. D) P < AFC. Show Answer Correct Answer: A) P < AVC. 20. An example of a barrier to entry is A) Government deregulation. B) High start-up costs. C) Perfect competition. D) Low start-up costs. Show Answer Correct Answer: B) High start-up costs. 21. In which market structure are sellers mutually interdependent? A) Monopolistic competition. B) Perfect competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 22. Effort by a producers or sellers of a particular product to secretly set production levels or prices. A) Product Differentiation. B) Price War. C) Patent. D) Collusion. Show Answer Correct Answer: D) Collusion. 23. If you want to form this type of business organization, you will have to get permission from a state or national government. This can be costly and require a lawyer. A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: C) Corporation. 24. Which market structure does Game Theory apply to? A) Monopolistic Competition. B) Oligopoly. C) Pure Competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 25. When a market has more competition between firms in the market what will happen to price for the product in that market? A) It will rise. B) It will fall. C) Stays the same. D) Unknowable. Show Answer Correct Answer: B) It will fall. 26. Ideal market where there are a large number of sellers of identical goods and services and in which no one seller controls supply or prices. A) Perfect Competition. B) Natural Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: A) Perfect Competition. 27. Markets like automobiles, cell phones, film production studios, and internet providers are examples of which market structure? A) Oligopoly. B) Monopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. 28. An aggreement among firms to sell at the same or similar price is known as ..... (illegal in the US) A) Price discrimination. B) Price fixing. C) Price gouging. D) Competitive pricing. Show Answer Correct Answer: B) Price fixing. 29. What is the term used to describe when a firm charges different prices to different customers for the same product? A) Price variation. B) Product differentiation. C) Customer segmentation. D) Price discrimination. Show Answer Correct Answer: D) Price discrimination. 30. An effective price floor must be set above equilibrium, resulting in: A) A shortage. B) A surplus. C) Limited choices. D) None of the above. Show Answer Correct Answer: B) A surplus. ← 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