This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 45 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A monopolist's average revenue is always ..... A) Equal to marginal revenue. B) Greater than the price of its product. C) Equal to the price of its product. D) Less than the price of its product. Show Answer Correct Answer: C) Equal to the price of its product. 2. What is the main goal of a corporation? A) Increase employee satisfaction. B) Maximize shareholder value tagsSSEMI3. C) Promote social responsibility. D) Minimize environmental impact. Show Answer Correct Answer: B) Maximize shareholder value tagsSSEMI3. 3. An industry is considered an oligopoly A) If the ten top producers together supply more than 70 percent of the total output. B) If the four top producers together supply more than 60 percent of the total output. C) If the two top producers together supply more than 90 percent of the total output. D) If the top producer alone supplies more than 50 percent of the total output. Show Answer Correct Answer: B) If the four top producers together supply more than 60 percent of the total output. 4. Which market structure is characterized by many firms selling differentiated products? A) Monopolistic competition. B) Monopoly. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: A) Monopolistic competition. 5. The attempt by firms to distinguish their goods and services from those of other firms A) Free Rider. B) Non price competition. C) Monopolistic Competition. D) Product differentiation. Show Answer Correct Answer: D) Product differentiation. 6. "In Belarus, the country north of Ukraine that has played a key role aiding Russia's attack, sanctions were applied to the country's authoritarian leader as well as his wife, Halina. They would block their property and interests in the United States, and prohibit Americans from engaging in transactions with them." Sanctions most nearly means: A) Economic penalties applied by one country to another. B) Violation of the laws of war that holds people who committed them responsible. C) A reward for countries committing war crimes against their citizens. D) Global financial system that allows the rapid transfer of money across borders. Show Answer Correct Answer: A) Economic penalties applied by one country to another. 7. What is the main barrier to entry in a monopoly? A) High barriers to entry. B) Moderate barriers to entry. C) Low barriers to entry. D) No barriers to entry. Show Answer Correct Answer: A) High barriers to entry. 8. A short time ago the economy was booming. Now, real GDP has declined for the last six months and businesses are cutting back their production and laying off workers. Which part of the business cycle best describes these events? A) Recession. B) Peak. C) Expansion. D) Trough. Show Answer Correct Answer: A) Recession. 9. Which of the following is a benefit of natural monopolies? A) Economies of scale. B) The Federal Trade Commission Act. C) Cease and desist order. D) Foreclosure. Show Answer Correct Answer: A) Economies of scale. 10. The ..... where the supply and demand curves cross A) Supply curve. B) Demand curve. C) Equilibrium point. D) Market supply. Show Answer Correct Answer: C) Equilibrium point. 11. Pollution caused by automobiles is an example of A) An innefficient allocation of resources. B) A positive externality. C) A negative externality. D) The public sector. Show Answer Correct Answer: C) A negative externality. 12. Low barriers to entry and takers of the market price for their product A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Perfect competition. 13. Which of the following is NOT a type of market structure? A) Competitive monopoly. B) Oligopoly. C) Perfect competition. D) All are types. Show Answer Correct Answer: A) Competitive monopoly. 14. What are the barriers to entry in imperfect competition? A) Start-up costs, skill requirements, and brand recognition. B) High barriers of entry, patents/copyrights, and mergers. C) Economies of scale, natural monopolies, and skill requirements. D) Start-up costs, skill requirements, and limited information. Show Answer Correct Answer: A) Start-up costs, skill requirements, and brand recognition. 15. A market structure with many companies selling similar products A) Monopolistic comp. B) Monopoly. C) Oligopoly. D) Perfect comp. Show Answer Correct Answer: A) Monopolistic comp. 16. Confers the right to exclude others from making, using, offering for sale, or selling an invention. A) Anti-trust. B) Patent. C) Natural monopoly. D) Collusion. Show Answer Correct Answer: B) Patent. 17. Prie floors are always ..... equilibrium price. A) Above. B) Below. C) Equal to. D) None of above. Show Answer Correct Answer: A) Above. 18. The effort by sellers to secretly set production levels or prices is called A) Compliance. B) Collusion. C) Price leadership. D) Nonprice competition. Show Answer Correct Answer: B) Collusion. 19. A philosophy that government should not interfere with commerce or trade. A) Monopoly theory. B) Competitive-price theory. C) Perfect competition theory. D) Let it happen. Show Answer Correct Answer: D) Let it happen. 20. What is the equilibrium condition for the output produced by a monopoly firm? A) AR = MR. B) MR = MC. C) AC = MC. D) TR = TC. Show Answer Correct Answer: B) MR = MC. 21. The maximum legal price that can be charged is called a A) Price fan. B) Price stair. C) Price floor. D) Price ceiling. Show Answer Correct Answer: D) Price ceiling. 22. When competitors cut their prices really low to win business. Happens in oligopolies and can form monopolies. A) Price War. B) Price Discrimination. C) Collusion. D) Cartel. Show Answer Correct Answer: A) Price War. 23. What is the only curve that continues to fall as output increases? A) Average Fixed Cost. B) Average Variable Cost. C) Marginal Cost. D) Average Total Cost. Show Answer Correct Answer: A) Average Fixed Cost. 24. What is a characteristic of an oligopolistic market? A) Producers are mutually interdependent. B) Products are unique. C) Entry into the industry is easy. D) Producers have no market power. Show Answer Correct Answer: A) Producers are mutually interdependent. 25. What is the difference between a monopoly firm and a perfectly competitive firm in terms of quantity produced and price? A) Monopoly firm can control quantity and price, while a perfectly competitive firm is a price taker. B) Monopoly firm can control quantity and price, while a perfectly competitive firm can only control quantity. C) Monopoly firm can control quantity and price, while a perfectly competitive firm can only control price. D) Monopoly firm can control quantity and price, while a perfectly competitive firm has no control over quantity or price. Show Answer Correct Answer: A) Monopoly firm can control quantity and price, while a perfectly competitive firm is a price taker. 26. Isla, Aria, and James are studying about different market structures in their economics class. They are particularly interested in oligopolies. They are discussing what could be the barriers to entry in an oligopoly. What do you think they concluded? A) Technological advancements and economic realities could be barriers. B) The system of government licenses and patents could be a barrier. C) Both technological advancements and the system of government licenses and patents could be barriers. D) Economic realities and the system of government licenses and patents could be barriers. Show Answer Correct Answer: C) Both technological advancements and the system of government licenses and patents could be barriers. 27. An advantage of a corporation is that A) Owners pay fewer taxes than other forms of business. B) The business is subject to little gov regulation. C) Owners have limited liability for debt. D) Owners have direct and immediate control of daily operations. Show Answer Correct Answer: C) Owners have limited liability for debt. 28. What kind of relationship exists between supply and price? A) Positive. B) Indirect. C) Direct. D) Negative. Show Answer Correct Answer: A) Positive. 29. Read the following situation to answer the question:The yeast needed to to make whole wheat bread rises sharply in price. What will happen to the price of whole wheat bread? A) The price will rise. B) The price will stay the same. C) The price will fall. D) None of above. Show Answer Correct Answer: A) The price will rise. 30. An example of perfect competition is when A) A seller decides to sell clothing, including shirts and jeans. B) Many sellers compete and none control the market price. C) A seller is misinformed causing him or her to overprice goods. D) None of above. Show Answer Correct Answer: B) Many sellers compete and none control the market price. ← 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