This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 54 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a single diner in a tiny rural Florida town is charging a price for its pancakes where the demand is unit elastic, its marginal revenue for pancakes is A) Negative. B) Undefined. C) Zero. D) Positive. E) Maximized. Show Answer Correct Answer: C) Zero. 2. A cost or benefit that arises from production or consumption of a good or service that falls on someone other than the producer or consumer A) Consumer Goods. B) Public goods. C) Perfect Competition. D) Externality. Show Answer Correct Answer: D) Externality. 3. In this market, entry is difficult due to high costs, but not impossible: A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. 4. Which is NOT a characteristic of monopolistic competition? A) Few sellers and many buyers. B) Similar but differentiated products. C) Limited control of prices. D) Freedom to enter/exit market. Show Answer Correct Answer: A) Few sellers and many buyers. 5. Consumers have more choice in an Oligopoly than in Monopolistic Competition A) False. B) True. Show Answer Correct Answer: B) True. 6. In this market structure, a business can offer low quality goods due to lack of competition A) Oligopoly. B) Monopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: B) Monopoly. 7. Which of the following characteristic is unique to an oligopoly? A) Mutual interdependence. B) Imperfect knowledge. C) Homogeneous product. D) High barriers to entry. Show Answer Correct Answer: A) Mutual interdependence. 8. An Oligopoly is when there are A) Only one producer. B) An open market with plenty of producers. C) A market that hasn't yet been discovered. D) Few producers who control the market. Show Answer Correct Answer: D) Few producers who control the market. 9. The demand curve for MONOPOLISTIC COMPETITON will be A) Highly inelastic. B) Perfectly inelastic. C) Highly elastic. D) Perfectly elastic. Show Answer Correct Answer: C) Highly elastic. 10. Which of the following markets is an example of a monopolistic competition? A) Dry cleaners. B) Phone carriers. C) Farmers. D) Airline industry. Show Answer Correct Answer: A) Dry cleaners. 11. What is a Government Monopoly? A) A monopoly that has NO government input. B) A monopoly created by the government. Show Answer Correct Answer: B) A monopoly created by the government. 12. What is the formula for Total Cost (TC) in the short run? A) TC = TVC. B) TC = TFC + TVC. C) TC = TFC. D) TC = TFC + MC. Show Answer Correct Answer: B) TC = TFC + TVC. 13. United States Postal Service is an example a ..... monopoly. A) Geographical. B) Government. C) Natural. D) Technological. Show Answer Correct Answer: B) Government. 14. Which market structure is controlled by a few companies at the top? A) Pure Competition. B) Oligopoly. C) Monopoly. D) Monopolistic Competition. Show Answer Correct Answer: B) Oligopoly. 15. Theoretical market structure that requires three conditions:very large numbers, identical products, and freedom of entry and exit A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Purely Competitive. Show Answer Correct Answer: D) Purely Competitive. 16. Fill in the blank. Income Elasticity of Demand is the responsiveness of quantity demanded to a change in ..... A) Quantity Supplied. B) Income. C) Price. D) Equilibrium. Show Answer Correct Answer: B) Income. 17. What is an advantage of a limited liability partnership vs. a general partnership A) Investment in the business. B) They don't have any. C) Limited liability. D) Business involvement. Show Answer Correct Answer: C) Limited liability. 18. In perfect competition, a firm maximizes profit in the short run by deciding A) What price to charge. B) Whether or not to enter a market. C) How much output to produce. D) None of above. Show Answer Correct Answer: C) How much output to produce. 19. What is it when you have factors that make it difficult for a business to enter a market? A) Economies of Scale. B) Barriers of Entry. C) Cartel. D) Differentiation. Show Answer Correct Answer: B) Barriers of Entry. 20. Which type of the following competition firms are considered as a price taker? A) Monopolistic. B) Pure Monopoly. C) Oligopoly. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 21. For a monopolist, A) Its marginal revenue is less than price. B) Existing economic profits can be sustained over time. C) Its demand curve is downward sloping. D) All of the above are true. Show Answer Correct Answer: D) All of the above are true. 22. If competition is inconvenient and impractical, what kind of monopoly tends to develop? A) Technological monopoly. B) Natural monopoly. C) Government monopoly. D) Geographic monopoly. Show Answer Correct Answer: B) Natural monopoly. 23. Anoligopolyis a market structure in which A) A single company dominates a market. B) New laws are created to help govern market conditions. C) A small number of companies dominate a market. D) Companies obtain government funding to market new products. Show Answer Correct Answer: C) A small number of companies dominate a market. 24. Which federal regulatory agency was established after the Great Recession of 2008-2009? A) SEC. B) FDIC. C) CFPB. D) ICC. Show Answer Correct Answer: C) CFPB. 25. All of the statements below characterize both perfectly competitive and monopolistically competitive markets EXCEPT: A) The market has a large number of firms. B) Individual firms produce output where marginal cost equals marginal revenue. C) Firms can easily enter or exit the market. D) Firms can affect the selling price of their product. E) Price is equal to average revenue. Show Answer Correct Answer: D) Firms can affect the selling price of their product. 26. Which market structure has the highest level of competition? A) Oligopoly. B) Monopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 27. All resources people make and use to produce and distribute goods and services A) Capital. B) Monopoly. C) Commodity. D) None of above. Show Answer Correct Answer: A) Capital. 28. Does the second market structure in question #2 operate as an incorporated or unincorporated entity? A) Incorporated. B) Unincorporated. Show Answer Correct Answer: B) Unincorporated. 29. A Dollar General opens up on the side of a mountain. Since there are no other stores around it, they are a monopoly in the area. What type of monopoly is this? A) Geographical. B) Natural. C) Technological. D) Government. Show Answer Correct Answer: A) Geographical. 30. Products are not differentiated in Oligopoly A) False. B) True. Show Answer Correct Answer: B) True. ← 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