This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 60 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main difference between a monopoly firm and a perfectly competitive firm in terms of quantity produced and price? A) Monopoly firm produces less quantity at a higher price. B) Perfectly competitive firm produces less quantity at a higher price. C) Perfectly competitive firm produces more quantity at a lower price. D) Monopoly firm produces more quantity at a lower price. Show Answer Correct Answer: A) Monopoly firm produces less quantity at a higher price. 2. Rubik's Cubes would be an example of ..... A) Monopoly. B) Oligopoly. C) Perfect Competition. D) Monopolistic Competition. Show Answer Correct Answer: A) Monopoly. 3. When two sides listen to suggestions from an objective third party but neither side must accept the suggestions A) Collective bargaining. B) Injunction. C) Binding arbitration. D) Mediation. Show Answer Correct Answer: D) Mediation. 4. Why was the Consumer Financial Protection Bureau (CFPB) created? A) To prevent another situation like the millions of low-quality home mortgages that were a major cause of the 2008-2009 Great Recession. B) To prevent people from borrowing money abroad to keep domestic banks profitable. C) To save the economy from greedy producers who offer inferior products at inflated prices. D) To offer alternatives to bank loans, which will help consumers by keeping down the cost of lending. Show Answer Correct Answer: A) To prevent another situation like the millions of low-quality home mortgages that were a major cause of the 2008-2009 Great Recession. 5. Natural monopoly A) Market structure in which the average costs of production are lowest when all output is produced by a single firm. B) A patent on a new product. C) Monopoly created and or owned by the government. D) A company has a monopoly because of its location. Show Answer Correct Answer: A) Market structure in which the average costs of production are lowest when all output is produced by a single firm. 6. Which type of business organization is managed by a Board of Governors? A) Government. B) Partnership. C) Corporation. D) Sole Proprietorship. Show Answer Correct Answer: C) Corporation. 7. Market structure A) Market structure having all conditions of pure competition except for identical products. B) Classification according to number and size of firm, type of product, and type of competition. C) Market structure in which the average costs of production are lowest when all output is produced by a single firm. D) Market structure characterized by a single producer in a market. Show Answer Correct Answer: B) Classification according to number and size of firm, type of product, and type of competition. 8. What is called a natural monopoly A) Producers who minimize average total costs rather than maximize profits. B) A firm that produces the quantity at which marginal cost equals marginal revenue. C) A company that is the sole owner of key resources. D) A company that can supply goods at a lower price than two or more companies. E) A company that only sells natural resources. Show Answer Correct Answer: D) A company that can supply goods at a lower price than two or more companies. 9. Pure oligopoly is based on the ..... products. A) Differentiated. B) Homogeneous. C) Unrelated. D) None of the above. Show Answer Correct Answer: B) Homogeneous. 10. Mergers and acquisitions might result in A) More competition. B) Smaller companies. C) Unfair competition. D) None of above. Show Answer Correct Answer: C) Unfair competition. 11. In a perfect competition market structure, when firms join or leave due to ..... barriers to entry, market ..... will change/shift. A) High / demand. B) Free / demand. C) High / supply. D) Free / supply. Show Answer Correct Answer: D) Free / supply. 12. Using advertising to try to convince customers to buy one product over another is a form of A) Non-price competition. B) Antitrust competition. C) Focus competition. D) Monopolistic competition. Show Answer Correct Answer: A) Non-price competition. 13. A firm in a monopolistic competitive market will be able to do which of the following? A) Easy entry into the market. B) Some ability to raise prices. C) Non-price competition. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Which of the following is a modern cartel? A) Coca-Cola, Pepsi, and Dr Pepper Snapple Group. B) Microsoft. C) Organization of Petroleum Exporting Countries. D) Standard Oil Company. Show Answer Correct Answer: C) Organization of Petroleum Exporting Countries. 15. There are only certain venues that can be considered a market. A) True. B) False. Show Answer Correct Answer: B) False. 16. Which of the following is an advantage of monopolistic competition? A) It would be easier and more cost efficient for the government to practice this market structure. B) This market structure will require creativity and innovation from the sellers. C) Potential sellers can easily enter the market since the products are not differentiated. D) None of above. Show Answer Correct Answer: B) This market structure will require creativity and innovation from the sellers. 17. Why do goods made in factories that cause pollution tend to be overproduced? A) Some people may refuse to purchase the items. B) Some stores stock more than they can sell. C) Some costs are not charged to the producer. D) Some benefits are wanted by the community. Show Answer Correct Answer: C) Some costs are not charged to the producer. 18. An economic system in which the government makes all economic decisions A) Market. B) Command. C) Traditional. D) Mixed. Show Answer Correct Answer: B) Command. 19. The ease of sellers entering the market is a factor in any market structure. A) False. B) True. Show Answer Correct Answer: B) True. 20. SSEMI3 b You go to a shoe store at the mall. The store carries many different brands and styles of shoes. What market structure would best describe this situation? A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic Competition. 21. SSEMI3 b This is a market structure in which a few very large firms dominate the market for a particular product A) Monopolistic Competition. B) Oligopoly. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: B) Oligopoly. 22. If a firm is producing the socially optimal quantity, then what is price equal to at that point of production? A) Average variable cost (AVC). B) Marginal revenue (MR). C) Average total cost (ATC). D) Marginal cost (MC). Show Answer Correct Answer: D) Marginal cost (MC). 23. All of the following are characteristics of perfectly competitive markets EXCEPT A) Perfect information. B) Barriers to entry. C) Identical goods. D) Many buyers. E) Many sellers. Show Answer Correct Answer: B) Barriers to entry. 24. Barriers to entry refers to: A) Is it easy or difficult to enter to leave the industry. B) The idea that market forces of supply and demand do not always provide the maximum benefit for society. C) Can a producer or supplier make prices or do they have to take the prices. D) The amount of locks on the business premises. Show Answer Correct Answer: A) Is it easy or difficult to enter to leave the industry. 25. How is an increase in demand depicted on the demand curve? A) The curve slopes upward. B) The curve straightens up. C) The curve bends inward. D) The curve slopes downward. Show Answer Correct Answer: D) The curve slopes downward. 26. Purely competitive market is price taker while pure monopolist is price maker. A) True. B) False. Show Answer Correct Answer: A) True. 27. Forces that reduce a firms per unit cost. =) A) Economic equality. B) Economies of force. C) Economic inequality. D) Economies of scale. Show Answer Correct Answer: D) Economies of scale. 28. Collusion between companies on prices is what makes cartels illegal in America A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Pure Monopoly. Show Answer Correct Answer: A) Oligopoly. 29. Which of the following is NOT considered Product Differentiation? A) A company knowing some inside information that other companies do not. B) McDonald's french fries vs Burger King french Fries. C) How one company's smart phone differs from another. D) Comparing a Ford pickup truck to a Chevy pickup truck. Show Answer Correct Answer: A) A company knowing some inside information that other companies do not. 30. Which is an example of a public good? A) A rock band. B) A car. C) National defense. D) Bread. Show Answer Correct Answer: C) National defense. ← 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