This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 47 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The example from the notes of a business that had a pure monopoly was ..... A) The Post Office. B) I wasn't paying attention. C) The United Parcel Service. D) Federal Express. Show Answer Correct Answer: A) The Post Office. 2. Suppose that a perfectly competitive firm is currently producing a quantity of output each month at which marginal cost is rising but is still significantly less than marginal revenue. To maximize profit, the firm should ..... A) Decrease its price. B) Increase its quantity of output. C) Increase its price. D) Decrease its quantity of output. Show Answer Correct Answer: B) Increase its quantity of output. 3. Profit Maximization A) Reducing costs. B) Minimizing expenses. C) Maximizing losses. D) Allows producers to charge more for a better product, because they have convinced consumers that their product is better. Show Answer Correct Answer: D) Allows producers to charge more for a better product, because they have convinced consumers that their product is better. 4. Collusion exists, even though it is illegal A) Monopolistic Competition. B) Perfect Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 5. How many zeroes are there in TEN MILLION? A) 5. B) 8. C) 7. D) 6. Show Answer Correct Answer: C) 7. 6. SSEMI3 This type of business organization is run by a board of directors (who are elected by the stock holders). A) Corporation. B) General Partnership. C) Limited Partnership. D) Sole Proprietorship. Show Answer Correct Answer: A) Corporation. 7. In the long run, the MONOPOLISTIC COMPETITION market is likely to experience A) Supernormal profits but higher than monopoly market. B) Supernormal profits but lower than monopoly market. C) Normal profits. D) Economic profits. Show Answer Correct Answer: B) Supernormal profits but lower than monopoly market. 8. Which piece of legislation was the FIRST to regulate market structures and competition? A) Clayton Act. B) Federal Trade Commission Act. C) Sherman Anti-trust Act. D) None of above. Show Answer Correct Answer: C) Sherman Anti-trust Act. 9. Which market structure is characterized by a large number of small firms, identical products, and easy entry for new firms? A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: A) Perfect competition. 10. Which of the following Brand Names is an Oligopoly? A) Hollister Jeans. B) Great Value Milk. C) Raceway Unleaded Gasoline. D) Delta Airline Flights. Show Answer Correct Answer: D) Delta Airline Flights. 11. Nearly perfect markets are beneficial because producers are as efficient as possible and A) Consumers do not pay more for a product than it is worth. B) Producers can sell at any price they choose. C) The quantity of goods produced is restricted. D) The price of a product bears no relationship to its production costs. Show Answer Correct Answer: A) Consumers do not pay more for a product than it is worth. 12. An externality is a side effect of production or consumption that has consequences A) For consumers only. B) For people other than the producer or consumer. C) For producers and consumers. D) For producers only. Show Answer Correct Answer: B) For people other than the producer or consumer. 13. What type of monopoly is found at all three levels of government? A) Technological monopoly. B) Government monopoly. C) Geographic monopoly. D) Natural monopoly. Show Answer Correct Answer: B) Government monopoly. 14. Expenses a new business must pay before the first product reaches the customer A) Barrier to entry. B) Start up costs. C) Perfect Compeition. D) None of the above. Show Answer Correct Answer: B) Start up costs. 15. Since movie theaters and video arcades provide highly substitutable services, they may be considered part of the entertainment market A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. Based on your notes how many market exist? A) 5. B) 8. C) 4. D) 2. Show Answer Correct Answer: C) 4. 17. Which type of market structure is the cell phone service provider industry? A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 18. The most important laws that promote competition are collectively called ..... A) Monopolistic Competition. B) Non-Price Competition. C) Anti-Trust Legislation. D) Price Fixing. Show Answer Correct Answer: C) Anti-Trust Legislation. 19. Which of the following is an example of an incentive? A) Hurricane. B) Job Loss. C) Pay Check. D) Lower wages. Show Answer Correct Answer: C) Pay Check. 20. This type of business has limited liability? A) Sole Proprietorship. B) Partnership. C) Corporation. D) Mom and Pop Shop. Show Answer Correct Answer: C) Corporation. 21. In the Gilded Age, the steel industry was controlled by which business leader? A) John D. Rockefeller. B) Andrew Carnegie. C) Cornelius Vanderbilt. D) JP Morgan. Show Answer Correct Answer: B) Andrew Carnegie. 22. A firm in perfect competition is free to set price at whatever level it pleases A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 23. Real or perceived differences between competing products in the sameindustry. A) Product differentiation. B) Nonprice competition. C) Imperfect choice. D) Consumer choice. Show Answer Correct Answer: A) Product differentiation. 24. Sanjay invested all of his savings to open a sporting goods store in his community. WHich quality of entrepreneurs did Sanjay most display by this action? A) Innovative. B) Willingness to take risks. C) Organized. D) Self-motivation. Show Answer Correct Answer: B) Willingness to take risks. 25. If one gas station lowers gas prices for the sole purpose of beating the price of the gas station across the street, it could cause a condition known as ..... A) Disequilibrium. B) Substitutes. C) Elasticity. D) Complements. Show Answer Correct Answer: A) Disequilibrium. 26. If the goal of government regulators of a natural monopoly is to reduce deadweight loss without subsidizing the monopolist, government regulators would set a price equal to: A) Average fixed cost. B) Average total cost. C) Average variable cost. D) Marginal cost. Show Answer Correct Answer: B) Average total cost. 27. Why is perfect competitive firms are considered as price takers? A) Each firm is very large. B) Many other firms produce identical products. C) Their Demand curves are downward sloping. D) There are no good substitutes for their products. Show Answer Correct Answer: A) Each firm is very large. 28. Price varies by attribute such as a location or by Customer Segment is ..... degree of Price Discrimination A) Second. B) First. C) Fourth. D) Third. Show Answer Correct Answer: D) Third. 29. SSEMI3 b This is a good that is virtually identical. Examples would be corn or crude oil. A) Commodity. B) Want. C) Luxury item. D) None of above. Show Answer Correct Answer: A) Commodity. 30. A structure in which a single producer supplies a unique product that has no close substitutes. In an unregulated monopoly, the producer sets price. A) Monopolistic Competition. B) Oligopoly. C) Monopoly. D) Perfect Competition. Show Answer Correct Answer: C) Monopoly. ← 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