This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 61 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Apart from each other, Ja'mya, M'Cayla, & Ashlyn own most of the rental houses in Eastman. Which is true? A) The market for rental houses in monopolistically competitive. B) The market for rental houses is a monopoly. C) The market for rental houses is an oligopoly. D) The market for rental houses is purely competitive. Show Answer Correct Answer: C) The market for rental houses is an oligopoly. 2. A cartel is an example of perfect competition. A) True. B) False. Show Answer Correct Answer: B) False. 3. Museums, public schools, and YMCAs are all A) Exempt from paying taxes. B) Completely supported by the government. C) Supported by professional organizations. D) Promoted by trade association. Show Answer Correct Answer: A) Exempt from paying taxes. 4. What is the slope of the marginal revenue curve? A) Positive. B) Depends on the quantity sold. C) Negative. D) Zero. Show Answer Correct Answer: C) Negative. 5. A major characteristics of monopolistic competition is that prices will be A) Unrelated to comp. B) Higher than monopoly. C) Higher than perfect competition. D) Lower than perfect comp. Show Answer Correct Answer: C) Higher than perfect competition. 6. The efficiency of monopolistic competition A) Depends on whether the gain from extra product variety offsets the selling cost and extra cost that arises from excess capacity. B) Is equal to that of monopoly. C) Is as clear cut as the efficiency of perfect competition. D) Is eliminated in the long run. E) Comes from its excess capacity. Show Answer Correct Answer: A) Depends on whether the gain from extra product variety offsets the selling cost and extra cost that arises from excess capacity. 7. Which of the following pieces of legislation prohibited unfair business practices, price setting, price discrimination, and set up the Federal Trade Commission to investigate unfair business practices. A) Clayton Anti-Trust Act. B) Federal Trade Commision. C) Sherman Anti-Trust Act. D) Interstate Commerce Act. Show Answer Correct Answer: A) Clayton Anti-Trust Act. 8. Which type of monopoly is allowed to exist because it gives an incentive to create or improve something? A) Geographic Monopoly. B) Government Monopoly. C) Natural Monopoly. D) Technological Monopoly. Show Answer Correct Answer: D) Technological Monopoly. 9. A firm operating in the ..... ? ..... market structure has no market power A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 10. The price charged by a perfectly competitive firm is A) The same as the market price. B) Different than the price charged by competing firms. C) Indeterminate. D) Higher the more the firm produces. E) Lower the more the firm produces. Show Answer Correct Answer: A) The same as the market price. 11. .... is the money a firm receives from selling its output. A) Cold cash money. B) Sales. C) Revenue. D) None of above. Show Answer Correct Answer: C) Revenue. 12. An economic model of competition among businesses in the same industry is called ..... A) Monopoly. B) Market Structure. C) Sole Proprietorship. D) Merger. Show Answer Correct Answer: B) Market Structure. 13. Setting prices below cost to drive smaller companies out of business A) Perfect Competition. B) Predatory pricing. C) Nonprice Competition. D) Product Differentiation. Show Answer Correct Answer: B) Predatory pricing. 14. Which market offers perfect substitution? A) Monopoly. B) Oligopoly. C) Monopolistic competition. D) Perfect competition. Show Answer Correct Answer: D) Perfect competition. 15. The government has these types of laws to regulate illegal practices of monopolies A) Anti-American. B) Anti-monopoly. C) Antitrust. D) Anti-environmental. Show Answer Correct Answer: C) Antitrust. 16. Perfect competition markets would have the highest barriers to entry. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 17. Henry, Zoe, and William are discussing about different market structures in their Leaving Cert course. Henry mentioned Perfect Competition, Zoe talked about Oligopoly, and William discussed Monopoly. Which of these is NOT a market structure on their course? A) Imperfect Competition. B) Oligopoly. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: A) Imperfect Competition. 18. A technological monopoly involves: A) Stealing plans from another business. B) Being the only seller in a small town. C) Having a patent for a new invention or scientific process. D) Having a few sellers in the market. Show Answer Correct Answer: C) Having a patent for a new invention or scientific process. 19. Monopolies don't have an incentive to increase quality or innovate because ..... A) They control the market. B) They need to in order to stay competitive. C) False, monopolies will continue to increase cost to make consumers happy. D) To increase profit. Show Answer Correct Answer: A) They control the market. 20. To be considered an oligopoly, the 4 largest firms must control at least ..... of the market. A) 30%. B) 60%. C) 50%. D) 40%. Show Answer Correct Answer: D) 40%. 21. SSEMI3 b Which market structure has the lowest barrier to entry? A) Perfect Competition. B) Monopoly. C) Oligopoly. D) None have a low barrier to entry. Show Answer Correct Answer: A) Perfect Competition. 22. How many units will consumers demand at a price of $ 10? A) 0. B) 400. C) 800. D) 200. Show Answer Correct Answer: C) 800. 23. Easy for new firms to enter the industry A) Perfect competition and monopolistic competition. B) Perfect competition and oligopolies. C) Oligopolies and monopolies. D) Monopolies and monopolistic competition. Show Answer Correct Answer: A) Perfect competition and monopolistic competition. 24. Rylie doesn't understand why the mailman puts mail in her mailbox, but UPS and FedEx deliver packages to her front porch. The reason for this is because the Post Office has a ..... monopoly in regard to putting objects inside her mailbox. A) Government. B) Technological. C) Natural. D) Geographic. Show Answer Correct Answer: A) Government. 25. In the US, gasoline is only produced by 6 major producers. This market is closest to: A) Perfect competition. B) Monopoly. C) Oligopoly. D) Monopolistic competition. Show Answer Correct Answer: C) Oligopoly. 26. A business co-owned by two or more partners A) Partnership. B) Sole proprietorship. C) Franchise. D) Corporation. Show Answer Correct Answer: A) Partnership. 27. Why do producers create more goods as market price increases? A) To eliminate scarcity. B) To reduce cost. C) To increase output. D) To earn higher profit. Show Answer Correct Answer: D) To earn higher profit. 28. Two toy companies decide to merge because they believe they will be able to develop more ideas for new toys and produce and sell them faster, at lower costs. A) Horizontal. B) Vertical. C) Conglomerate. D) None of above. Show Answer Correct Answer: A) Horizontal. 29. Which market structure has businesses that sell identical goods? A) Monopoly. B) Monopolistic Competition. C) Perfect Competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect Competition. 30. Which industry is an example of oligopoly? A) Tomato production. B) Diamond mining. C) Car manufacturing. D) Dairy farming. Show Answer Correct Answer: C) Car manufacturing. ← 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