This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 57 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following best defines a monopoly? A) A market where a single individual owns all of the companies in the market. B) A market where a single entity is large enough to set prices without impacting demand. C) A market where there are many well-informed buyers and sellers. D) A market where one individual owns companies through the entire distribution line, from raw materials to distribution of finished goods. Show Answer Correct Answer: B) A market where a single entity is large enough to set prices without impacting demand. 2. Market structure with a few sellers. Sometimes they form illegal agreements to keep prices high. A) Perfect Competition. B) Monopolistic Competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: C) Oligopoly. 3. Which agency has the authority to issue "cease and desist" orders? A) FDIC. B) EPA. C) FERC. D) FTC. Show Answer Correct Answer: D) FTC. 4. When a consumer is willing to buy a good or service. A) Elasticity. B) Demand. Show Answer Correct Answer: B) Demand. 5. Which of the following industries is most likely to be regulated by the government? A) Precious jewels. B) Dry cleaning. C) Electrical services. D) Consumer products. Show Answer Correct Answer: C) Electrical services. 6. What are the responsibilities of an entrepreneur? A) They assume risk. B) They recognize an opportunity. C) They test their product or service in a local market. D) They gather the resources they need to go into business. E) All of the above. Show Answer Correct Answer: E) All of the above. 7. These ar legal restrictions on how high or low a market price may go: A) Shortage. B) Surplus. C) Equilibrium. D) Price ceiling. E) Price controls. Show Answer Correct Answer: E) Price controls. 8. The type of organization that generates the most money is A) Cooperatives. B) Corporations. C) Partnerships. D) Franchises. Show Answer Correct Answer: B) Corporations. 9. Which of the following is not typical outcome of collusion? A) Price tends to be higher in the entire industries for consumers. B) There is an incentive to cheat to increase your own profits. C) It occurs in a perfectly competitive market. D) It occurs in an oligopoly only. E) Competition is removed from the market. Show Answer Correct Answer: C) It occurs in a perfectly competitive market. 10. Charlie's Cappuccinos, Melia's Mocha, and Jared's Java have agreed to collude and act like a monopoly by setting a price of $ 5 per cup of coffee.What is the most likely outcome? A) At least one firm will exit the industry. B) Industry profits will stay the same in the long run. C) Industry profits will be higher in the long run. D) At least one firm will violate the agreement and raise its price. E) At least one firm will violate the agreement and lower its price. Show Answer Correct Answer: E) At least one firm will violate the agreement and lower its price. 11. This type of market is the easiest to enter. A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 12. For price discrimination to take place, a market must meet these three conditions: A) All firms sell the same product; customers can be divided into groups; there are no barriers to entry. B) Firms have market power; customers can be divided into groups; buyers can't resell the product or service. C) All firms sell the same product; customers can be divided into groups; buyers can easily resell the good or service. D) None of above. Show Answer Correct Answer: B) Firms have market power; customers can be divided into groups; buyers can't resell the product or service. 13. Government regulations exist to discourage monopolies in the U.S. economy. A) False. B) True. Show Answer Correct Answer: B) True. 14. Which market structure is made up of a few large firms? A) Monopolistic Competition. B) Monopoly. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 15. A merger involving 4 or more unrelated companies A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: C) Conglomerate. 16. To determine whether an industry is an oligopoly, economists measure A) Increases in the price of goods. B) Product differentiation. C) Concentration of market share. D) Commodity measuring. Show Answer Correct Answer: C) Concentration of market share. 17. Monopolistic competition is different from pure competition in that A) New sellers cannot enter the market. B) Sellers have products which are a little different. C) Sellers control the price of their products. D) People have no choice in what to buy. Show Answer Correct Answer: B) Sellers have products which are a little different. 18. A firm in monopolistic competition is a price ..... A) TAKER. B) MAKER. Show Answer Correct Answer: B) MAKER. 19. Market failure occurs whenever A) Free markets fail to distribute resources efficiently. B) Voluntary exchange in a market fails to result in a sale. C) Government builds infrastructure. D) Goods fail to arrive at a market in a timely fashion. Show Answer Correct Answer: A) Free markets fail to distribute resources efficiently. 20. It is a market structure where there is only one seller and there are many buyers. A) Monopolistic competition. B) Perfect competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: C) Monopoly. 21. ..... are a percentage of earnings paid by franchises to parent companies. A) Investments. B) Fringe benefits. C) Salaries. D) Royalties. Show Answer Correct Answer: D) Royalties. 22. Businesses like car or cereal manufacturers A) Monopoly. B) Perfect Competition. C) Monopolistic competition. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 23. Products that are the same no matter who produces them A) Homogeneous products. B) Grade. C) Differentiated products. D) Market structure. Show Answer Correct Answer: A) Homogeneous products. 24. When Gillette Co. unveiled Mach3, the world's first triple-blade razor, it took a bold gamble ..... Mach3 cartridges were to sell for around $ 1.60 each. Skeptics predicted the personal-care giant would soon be forced to cut that price. But the price is holding and Mach3 has become the No. 1 blade and razor. What's the secret to pricing power? For starters, a commitment to innovation. Gillette spent nearly $ 1 billion on the development and initial marketing of Mach3. Based on the passage, what type of monopoly is helping Gillette Co. maintain a high price for its Mach3 razor? A) Natural monopoly. B) Technological monopoly. C) Geographic monopoly. D) None of above. Show Answer Correct Answer: B) Technological monopoly. 25. Which type of business model does not seek financial gain, but rather looks after the interests of their consumers? A) Co-operative. B) Monopoly. C) Multi-national. D) Non-profit. Show Answer Correct Answer: D) Non-profit. 26. There are many substitute products available to choose from in a monopolistic market structure. A) True. B) False. Show Answer Correct Answer: B) False. 27. Which market structure has the lowest barriers of exit and entry? A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 28. A market structure where a few large firms dominate. A) Twisted. B) Oligopoly. C) Fridgeopoly. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 29. What company has the highest percentage of net income in the U.S? A) Sole proprietorship. B) Corporations. C) Multinationals. D) None of above. Show Answer Correct Answer: B) Corporations. 30. What is the biggest benefit of co-operatives? A) More options to choose from. B) Less options to choose from. C) Cheaper prices. D) More profit. Show Answer Correct Answer: C) Cheaper prices. ← 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