This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 42 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Technology advances quickly, all companies sell at about the same price, always have "price promotions" available to consumers A) Monopoly. B) Monopolistic comeptition. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: C) Oligopoly. 2. A beauty salons would be an example If who' which type of market structure? A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 3. Describe the four features of perfect competition. A) Large number of firms, identical products, no market power, no barriers to entry or exit. B) Large number of firms, product differentiation, some market power, some barriers to entry or exit. C) Only a few firms, product differentiation, lots of market power, high barriers to entry or exit. D) Only one firm, no need for product differentiation, total market power, extremely high barriers to entry and exit. Show Answer Correct Answer: A) Large number of firms, identical products, no market power, no barriers to entry or exit. 4. The key thing the government does to turn any seller into a monopoly is A) Enforce anti-trust laws. B) Tax it more heavily. C) Subsidize it. D) Issue patents. Show Answer Correct Answer: D) Issue patents. 5. A corporation is a legal "person." This means the corporation A) Is difficult to organize. B) Can raise only limited capital. C) Is the most common form of business organization. D) Can sue or be sued, enter into contracts, and must pay taxes. Show Answer Correct Answer: D) Can sue or be sued, enter into contracts, and must pay taxes. 6. A large number businesses selling similar but different products at different prices A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic competition. 7. A business organization owned and controlled by one person A) Franchise. B) Sole Proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: B) Sole Proprietorship. 8. Liability is the A) Opportunity of the sole proprietor tokeep all profits after taxes. B) Legal obligation to pay debts. C) Requirement to offer fringe benefits. D) Necessity to do a lot of paper work. Show Answer Correct Answer: B) Legal obligation to pay debts. 9. The USA has a ..... market, meaning we have the right to choose what and what not to buy. A) Rich. B) High. C) Free. D) Low. Show Answer Correct Answer: C) Free. 10. If an industry has 4 firms, but is very expensive for new firms to enter, it is probably which market structure? A) Monopolistic competition. B) Oligopoly. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: B) Oligopoly. 11. A movie theater that provides discounted tickets to groups such as seniors, students, and military personal is engaging in A) Collusion. B) Non-price competition. C) Price discrimination. D) Deregulation. Show Answer Correct Answer: C) Price discrimination. 12. What is a Patent? A) An agreement to share the invention of a product with others. B) Money shared with stockholders based on the sell of a product. C) A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time. D) None of above. Show Answer Correct Answer: C) A license that gives the inventor of a new product the exclusive right to sell it for a certain period of time. 13. What kind of market runs most efficiently when one large firm supplies all of the output? A) Perfect competition. B) A network. C) Imperfect competition. D) A natural monopoly. Show Answer Correct Answer: D) A natural monopoly. 14. True or False:In perfect competition, the equilibrium price is set by supply and demand. A) True. B) False. Show Answer Correct Answer: A) True. 15. Governmental Regulatory Agency in charge of Food quality A) EPA. B) CPA. C) SEC. D) FDA. Show Answer Correct Answer: D) FDA. 16. Which of the following is not monopolistic competition? A) Grocery stores. B) Clothing stores. C) Restaurants. D) Cell phone providers. Show Answer Correct Answer: D) Cell phone providers. 17. Market dominated by a single seller A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Monopoly. 18. This business organization has to pay fees and royalties to the parent company. A) Sole proprietorship. B) Franchise. C) Partnership. D) Corporation. Show Answer Correct Answer: B) Franchise. 19. High barriers to entry means less than 5 or fewer businesses control 70% or more market share. A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 20. A market structure with a small number of firms whose behaviors is interdependent A) Oligopoly. B) Monopoly. C) Barriers to entry. D) Monopolistic Competition. E) Perfect Competition. Show Answer Correct Answer: A) Oligopoly. 21. What does it mean when a firm engages in market differentiation? A) It seeks a government contract to have the sole right to provide a good or service in an area. B) It makes agreements with other firms about production levels. C) It seeks to distinguish its good or services from those of other firms. D) It sets a price for its product and expects smaller firms to price their products accordingly. Show Answer Correct Answer: C) It seeks to distinguish its good or services from those of other firms. 22. Which market structure is characterized by many farmers producing identical agricultural products? A) Oligopoly. B) Monopolistic Competition. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 23. The demand curve for PERFECT COMPETITION is A) Inelastic. B) Elastic. C) Perfectly elastic. D) Perfectly inelastic. Show Answer Correct Answer: C) Perfectly elastic. 24. Monopolies are able to control prices because they have A) Much competition and there are many substitutes for their products. B) Much competition and there are no close substitutes for their products. C) No competition and there are no close substitutes for their products. D) None of above. Show Answer Correct Answer: C) No competition and there are no close substitutes for their products. 25. NPF-Stan & Netflix drops its monthly fee by 50%. What curve is impacted in the cinema market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: A) Demand Left. 26. The demand for a perfectly competitive firm's product is ..... A) Inelastic. B) Perfectly inelastic. C) Perfectly elastic. D) Unit elastic. E) Elastic. Show Answer Correct Answer: C) Perfectly elastic. 27. This market structure occurs when an entire industry is controlled by one company A) Monopolistic Competition. B) Monopoly. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 28. Scottish economist who wrote the Wealth of Nations a precursor to modern Capitalism A) Adam Smith. B) Joseph Stalin. C) Karl Marx. D) None of above. Show Answer Correct Answer: A) Adam Smith. 29. SSEMI3 b This is a market structure with a large number of buyers and sellers of products that are similar but can be differentiated by brand, quality, etc. A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic Competition. 30. Which of these was the winner of the monopoly of the year in the article we read in class? A) NCAA. B) NFL. C) NAACP. D) NCIS. Show Answer Correct Answer: A) NCAA. ← 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