This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 50 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. Which of the following is characterized by high barriers to entry? A) Monopoly. B) Pure Competition. C) Free Market. D) Oligopoly. Show Answer Correct Answer: A) Monopoly. 3. Allows parties to exchange goods or services to produce products A) Imperfect Competition. B) Resource Market. C) Free Market. D) None of above. Show Answer Correct Answer: B) Resource Market. 4. If a company was trying to figure out a way to advertise the differences in their shoes, that company would most likely fit in the market structure of A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: C) Monopolistic Competition. 5. A perfect competitive firm charges a price that is ..... A) Different to other firms. B) Similar to other firms. C) Lower than other firms. D) Higher than other firms. Show Answer Correct Answer: B) Similar to other firms. 6. Which of the following is an example of a geographic monopoly? A) The only gas station in a radius of one mile. B) The only restaurant in a radius of 200 miles. C) A store in Chicago that sells only leather goods. D) None of above. Show Answer Correct Answer: B) The only restaurant in a radius of 200 miles. 7. Which market structure has some control over pricing and is relatively easy to enter into? A) Monopoly. B) Perfect Competition. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic Competition. 8. Which economic system relies on customs, traditions, and cultural beliefs to make economic decisions? A) Traditional economy. B) Command economy. C) Socialist economy. D) Capitalist economy. Show Answer Correct Answer: A) Traditional economy. 9. List the four market structures in the order from least competitive to most competitive. A) Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition. B) Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly. C) Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition. D) Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition. Show Answer Correct Answer: A) Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition. 10. The market structure of pure competition is distinctive because- A) The sellers in this market structure have no control over price. B) There are no examples of this type of market structure. C) Only one seller is needed in this market structure. D) There are large number of barriers to entry into this market structure. Show Answer Correct Answer: B) There are no examples of this type of market structure. 11. There are many substitute products available to choose from in a perfectly competitive market structure. A) False. B) True. Show Answer Correct Answer: B) True. 12. In what market form would companies engage in collusion or price fixing? A) Perfect (Pure) Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 13. This occurs when large firms produce more than 80% of the total industrial output A) Perfect Competition. B) Pure Monopoly. C) Monopolistic Competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 14. Number of sellers in an oligopoly A) One. B) A few. C) Many. D) None of above. Show Answer Correct Answer: B) A few. 15. Kai, Charlotte, and Nora are running different coffee shops in a monopolistic competition. What physical characteristics can they use for non-price competition? A) Location of their coffee shop, level of service, and advertising. B) Location of their coffee shop, level of service, and image or status of their coffee shop. C) Level of service, advertising, and image or status of their coffee shop. D) Location of their coffee shop, advertising, and image or status of their coffee shop. Show Answer Correct Answer: B) Location of their coffee shop, level of service, and image or status of their coffee shop. 16. The name given to the ideal price and quantity sold of a product so that both supply and demand can be maintained. A) Shortage. B) Equilibrium. C) Incentive. D) Economics. Show Answer Correct Answer: B) Equilibrium. 17. Role of Government A) The government has the power to maintain competition and regulate certain monopolies that exist for the public's welfare. B) The impact of government on a society. C) The importance of government in a society. D) The role of government in a society. Show Answer Correct Answer: A) The government has the power to maintain competition and regulate certain monopolies that exist for the public's welfare. 18. Nike signed Michael Jordan in 1984 in order to get more young people to buy Nike instead of Converse or adidas. They tried to show their shoe was cool and therefore superior. This is- A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: C) Monopolistic competition. 19. Which of the following markets is NOT likely to be an example of perfect competition A) Agricultural products. B) The market for brownies at First Coast. C) A large corporation. D) All of the previous are examples of perfect competition. Show Answer Correct Answer: C) A large corporation. 20. Characteristics of perfect Competition all expect A) No transaction cost. B) Many buyers and sellers. C) Price bias. D) Company makes similar products. Show Answer Correct Answer: C) Price bias. 21. A formal, illegal agreement between firms to set prices or behave in a cooperative manner is an example of A) Collusion. B) Oligopoly. C) Trust. D) Economies of scale. Show Answer Correct Answer: A) Collusion. 22. Which of the following statements is in correct? A) Under monopoly there is no difference between a firm and industry. B) A monopolist may restrict the output and raise the price. C) Free entry and exit in a Monopoly Market. D) Product differenciation is peculiar to monopolistic competition. Show Answer Correct Answer: C) Free entry and exit in a Monopoly Market. 23. An oligopoly is an industry where A) One seller dominates. B) A few sellers dominate. C) Many sellers struggle to get market share. D) Firms are so powerful they make government submit to them. Show Answer Correct Answer: B) A few sellers dominate. 24. In Perfect Competition products are differentiated A) True. B) False. Show Answer Correct Answer: A) True. 25. SSEMI3 b A technological monopoly can be established if only one firm can sell a product because the government has issued them a: A) Price Ceiling. B) Surplus. C) Supply monopoly. D) Patent. Show Answer Correct Answer: D) Patent. 26. The greater the competition in market, the greater the profit A) True. B) False. C) Neither. D) None of above. Show Answer Correct Answer: B) False. 27. When all inputs increase by 10%, output rises by 5%. What is this economic phenomenon? A) Increasing marginal returns. B) Increasing returns to scale. C) Diminishing marginal returns. D) Decreasing returns to scale. Show Answer Correct Answer: D) Decreasing returns to scale. 28. Home Depot participates in which market structure? A) Oligopoly. B) Monopolistic competition. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: A) Oligopoly. 29. Which of the following has many buyers and many sellers? A) Monopoly. B) Perfect competition. C) Oligopoly. D) Duopoly. Show Answer Correct Answer: B) Perfect competition. 30. MONOPOLISTIC COMPETITION can be seen as a mixture between ..... and ..... market structures. A) Monopoly and oligopoly. B) Perfect competition and oligopoly. C) Perfect competition and monopoly. D) None of above. Show Answer Correct Answer: C) Perfect competition and 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