This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A market that runs most efficiently when one large firm provides all of the output. It's inconvenient or impractical to have several competing firms. Example:Electric company for DR A) Natural Monopoly. B) Oligopoly. C) Monopoly. D) Government Monopoly. Show Answer Correct Answer: A) Natural Monopoly. 2. A firm in perfect competition faces a horizontal demand curve for all of the following reasons except that A) The firm takes the price as given from the market. B) The product the firm sells is identical to the product sold by other firms in the market. C) The firm is unable to influence the market price because of its small size. D) The firm's sales are limited so it is impossible for the firm to sell more and lower the price. E) The firm can sell as much as it wants at the price established in the market. Show Answer Correct Answer: D) The firm's sales are limited so it is impossible for the firm to sell more and lower the price. 3. Local stores sell a particular pair of sneakers for $ 80. A picture of a basketball star Lebron James wearing these sneakers appears in all the local Ohio newspapers. The next day, sales for sneakers start to rise. What is likely to happen to the price of the sneakers over the next several weeks? A) People will refuse to buy these sneakers. B) The price for the sneakers will not change. C) The price will fall as people learn Lebron James wears them. D) The price of the sneakers will rise as more people want similar sneakers. Show Answer Correct Answer: D) The price of the sneakers will rise as more people want similar sneakers. 4. Cars, movie studios, cell phone service, airlines are examples A) Perfect Competition. B) Monopoly. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: C) Oligopoly. 5. It is usually very difficult to enter a market that is a monopoly. A) False. B) True. Show Answer Correct Answer: B) True. 6. The ability of a company to change prices and output like a monopolist A) Market ability. B) Market influence. C) Market power. D) Market trends. Show Answer Correct Answer: C) Market power. 7. Which of the following is a NEGATIVE externality? A) Pollution. B) Coming to school sick. C) Blasting loud music outside in the middle of the night. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. When competing businesses work together and agree to set prices for their competing products A) Price fixing. B) Market allocation. C) Predatory pricing. D) Merger. Show Answer Correct Answer: A) Price fixing. 9. A monopoly is characterized by having no substitutable goods. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. An oligopoly is a market or an industry A) That is dominated by just a few firms that produce similar or identical products. B) In which a large number of firms produce essentially the same product. C) That consists of a single producer of a product that has no close substitutes. D) In which a large number of producers provide goods that are similar but varied. Show Answer Correct Answer: A) That is dominated by just a few firms that produce similar or identical products. 11. The defining characteristic of a natural monopoly is ..... A) Constant returns to scale over the relevant range of output. B) Diseconomies of scale over the relevant range of output. C) Economies of scale over the relevant range of output. D) Constant marginal cost over the relevant range of output. Show Answer Correct Answer: C) Economies of scale over the relevant range of output. 12. Why does the government regulate natural monopolies? A) To increase competition in the market. B) To prevent the monopoly from charging excessively high prices. C) To ensure the monopoly provides an adequate, high-quality amount of the product. D) All of the above are possible reasons for regulation. Show Answer Correct Answer: D) All of the above are possible reasons for regulation. 13. Cartels are illegal in the United States. A) False. B) True. Show Answer Correct Answer: B) True. 14. If a firm must lower its price to sell more of a good, which of the following must also be true? A) Its marginal revenue curve is the same as its marginal cost curve. B) Its marginal revenue curve is upward-sloping. C) Its marginal revenue curve is lower than its demand curve. D) Its marginal revenue curve is equal to its demand curve. E) Its marginal revenue curve is higher than its average total cost curve. Show Answer Correct Answer: C) Its marginal revenue curve is lower than its demand curve. 15. True or False:Firms An oligopoly is a market dominated by just a few firms who have no control over the price of their products A) True. B) False. Show Answer Correct Answer: B) False. 16. Coke and Pepsi are examples of this type of market: A) Monopoly. B) Monopolistic competition. C) Oligopoly. D) Perfect competition. Show Answer Correct Answer: C) Oligopoly. 17. What is the unethical and dangerous behavior that cartels engage in? A) Competition. B) Coordination. C) Collusion. D) Coercion. Show Answer Correct Answer: C) Collusion. 18. Anika, Sophia, and Aria are playing a game of 'Market Masters'. They are discussing different market structures. Anika asks, 'What is perfect competition?' Can you help them answer? A) Perfect competition is a market structure where there are many buyers and sellers, differentiated products, limited information, high barriers to entry or exit, and individual firms have control over the market price. B) Perfect competition is a market structure where there are few buyers and sellers, heterogeneous products, imperfect information, high barriers to entry or exit, and individual firms have control over the market price. C) Perfect competition is a market structure where there are few buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and individual firms have control over the market price. D) Perfect competition is a market structure where there are many buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no individual firm has control over the market price. Show Answer Correct Answer: D) Perfect competition is a market structure where there are many buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no individual firm has control over the market price. 19. Markets where many businesses sell products that are similar, but not identical A) Perfect competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 20. If Annie & Skye need to raise a lot of capital, which type of organization might they choose & what tradeoff might they make? A) Partnership; gain $ & give up limited liability. B) Corporation; gain $ & give up unlimited life. C) Partnership; gain $ & give up most control. D) Corporation;gain $ & give up most control. Show Answer Correct Answer: D) Corporation;gain $ & give up most control. 21. Which of the following is NOT a form of non-price competition? A) Advertising. B) Physical characteristics. C) Discounts. D) Location. Show Answer Correct Answer: C) Discounts. 22. Redcues extreme ups and downs in our economy and helps to keep prices from changing too quickly A) Security. B) Growth. C) Full employment. D) Stability. Show Answer Correct Answer: D) Stability. 23. Which industry best exemplifies an oligopoly? A) Fast-food. B) Publishing. C) Farming. D) Women's clothing. Show Answer Correct Answer: A) Fast-food. 24. Businesses that have no control over price A) Oligopoly. B) Price Fixing. C) Price Takers. D) Monopoly. Show Answer Correct Answer: C) Price Takers. 25. What is the purpose of the Consumer Financial Protection Bureau? A) To provide oversight and guidance in the financial lending industry. B) To oversee the safety of food and pharmaceuticals. C) To prevent sellers from making false claims about their products. D) To require corporations to share financial information with their stockholders. Show Answer Correct Answer: A) To provide oversight and guidance in the financial lending industry. 26. When the government creates a law used to protect individuals this is know as: A) Deregulation. B) Preventing a market failure. C) Regulation. D) Positive Externality. Show Answer Correct Answer: C) Regulation. 27. In monopolistic competition, how do consumers differentiate between the goods produced by different firms? A) Price difference. B) Brand names and packaging. C) Taste difference. D) All of the above. Show Answer Correct Answer: B) Brand names and packaging. 28. Which market structure has a single seller with no close substitutes? A) Perfect competition. B) Monopoly. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: B) Monopoly. 29. Which type of monopoly is allowed to exist because there is only one company legally allowed to provide this service? A) Geographic Monopoly. B) Natural Monopoly. C) Government Monopoly. D) Technological Monopoly. Show Answer Correct Answer: C) Government Monopoly. 30. Lowest barriers to entry A) Monopoly. B) Oligopoly. C) Perfect competition. D) None of above. Show Answer Correct Answer: C) Perfect competition. ← 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