This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 64 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Percentage of a total market (100%) that a business serves A) Market Share. B) Monopoly. C) Grade. D) Merger. Show Answer Correct Answer: A) Market Share. 2. A public utility, such as an electric company, is an example of a A) Geographic monopoly. B) Government monopoly. C) Natural monopoly. D) None of above. Show Answer Correct Answer: C) Natural monopoly. 3. ..... is an illegal group of producers who agree to fix prices, limit output, or divide markets. A) Collusion. B) Price-gouging. C) Cartel. D) Raising prices. Show Answer Correct Answer: C) Cartel. 4. SSEMI3 b This market structure has a large number of buyers and sellers with identical products A) Perfect Competition. B) Monopolistic Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Perfect Competition. 5. The most competitive market structure is A) Monopoly. B) Monopolistic competition. C) Perfect competition. D) Oligopoly. Show Answer Correct Answer: C) Perfect competition. 6. Which of the following are most likely toimprove a company's overall productivity? A) Highertax rates on its workers' incomes. B) Improvements in its trade relations. C) Advances in its technology. D) None of the above. Show Answer Correct Answer: C) Advances in its technology. 7. In order for a business to be successful it must be ..... A) Entrepreneur. B) Communist. C) Free. D) Organized. Show Answer Correct Answer: D) Organized. 8. A market structure in which there are many buyers and sellers of an identical product. A) Oligopoly. B) Monopoly. C) Monopolistic Competition. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 9. Some markets are perfectly competitive. A) False. B) True. Show Answer Correct Answer: A) False. 10. When P=MR=AR, what market structure is this? A) Monopolistic Competition. B) Perfect Competition. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Perfect Competition. 11. Which of the following statements about an oligopoly is false? A) There are high barriers to entry into the market. B) Firms' output and pricing decisions are irrelevant their competitors. C) There are only a few firms in the market. D) Firms in the market are mutually interdependent. E) Game theory is useful in analyzing the strategies of firms competing in the market. Show Answer Correct Answer: B) Firms' output and pricing decisions are irrelevant their competitors. 12. An example of Human Capital would include A) The higher the skill the lower the wages. B) The higher the skill the higher the wages. C) Specialized training does not equal higher pay. D) Unskilled workers and semi-skilled workers get equal pay. Show Answer Correct Answer: B) The higher the skill the higher the wages. 13. This market structure can act like a monopoly when the if the few firms involved all set prices the same A) Monopolistic Competition. B) Perfect Competitio. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: D) Oligopoly. 14. An example of this monopoly is the U.S. Postal Service A) Technological Monopoly. B) Natural Monopoly. C) Government Monopoly. D) Geographic Monopoly. Show Answer Correct Answer: C) Government Monopoly. 15. Apple Iphone Market(in 2006) A) Government. B) Technological. C) Geographic. D) Natural. Show Answer Correct Answer: B) Technological. 16. Numerous sellers offer similar but slightly different products A) Oligopoly. B) Monopolistic Competition. C) Perfect Competition. D) Pure Monopoly. Show Answer Correct Answer: B) Monopolistic Competition. 17. ..... is the study of decisions made by individuals and business. Examples of this area include how the price of homes in an area will impact the number of people who are willing and able to buy. A) Communism. B) Macroeconomics. C) Microeconomics. D) Socialism. Show Answer Correct Answer: C) Microeconomics. 18. A price taker is a seller that has no control over the price of the product it sells. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 19. For a monopolistically competitive firm, at the profit-maximizing quantity of output, A) Marginal revenue exceeds marginal cost. B) Marginal cost exceeds average revenue. C) Price equals marginal revenue. D) Price exceeds marginal cost. Show Answer Correct Answer: D) Price exceeds marginal cost. 20. There is non-price competition, but businesses compete by product differentiation and advertising A) Pure Monopoly. B) Perfect Competition. C) Oligopoly. D) Monopolistic Competition. Show Answer Correct Answer: D) Monopolistic Competition. 21. The ability to produce a product with lower opportunity costs than another country A) Import. B) Absolute advantage. C) Export. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 22. Trying to satisfy unlimited wants with limited resources defines ..... and is the fundamental problem of economics. A) Wants. B) Scarcity. C) Needs. D) Microeconomics. Show Answer Correct Answer: B) Scarcity. 23. Chick Fil A claims their chicken sandwich tastes better than Popeyes' chicken sandwich. This is an example of ..... A) Barrier to entry. B) Product differentiation. C) Patent. D) Copyright. Show Answer Correct Answer: B) Product differentiation. 24. Monopolists are able to control prices because they have A) Much competition and many substitutes. B) Much competition and no substitutes. C) No competition and many substitutes. D) No competition and no substitutes. Show Answer Correct Answer: D) No competition and no substitutes. 25. James, Scarlett, and Isla are running a lemonade stand in a perfectly competitive market. In the short run, at what point will their stand be in equilibrium? A) Where the price of lemonade equals their lowest cost. B) Where their average revenue equals total revenue and quantity sold equals price times quantity. C) Where quantity sold equals price times quantity and quantity equals price. D) Where their marginal cost equals marginal revenue and marginal cost is rising. Show Answer Correct Answer: D) Where their marginal cost equals marginal revenue and marginal cost is rising. 26. What is the difference between a monopoly and an oligopoly? A) Monopoly has competition; oligopoly does not. B) Monopoly has one seller; oligopoly has a few tagsSSEMI3. C) Monopoly has cartels; oligopoly has price wars. D) Monopoly has low barriers to entry; oligopoly has high barriers to entry. Show Answer Correct Answer: B) Monopoly has one seller; oligopoly has a few tagsSSEMI3. 27. Which of the following is the best example of a natural monopoly? A) Diamonds. B) A patented good. C) The U.S. postal service. D) Water company. Show Answer Correct Answer: D) Water company. 28. In which market structure must sellers take whatever price the market determines? A) Monopolistic competition. B) Oligopoly. C) Perfect competition. D) Monopoly. Show Answer Correct Answer: C) Perfect competition. 29. What is a merger? A) When government no longer interferes in the market, letting it run with no restrictions. B) When a company joins with another company or companies to form a single firm. C) When there is an agreement of oligopoly members to set prices and production levels. D) When a company becomes the only efficient option given decreasing average costs. Show Answer Correct Answer: B) When a company joins with another company or companies to form a single firm. 30. 5 Characteristics of Pure Competition A) Monopoly. B) Perfect competition. C) Oligopoly. D) A Large numbers of buyers and sellers exist.Buyers and sellers deal in identical products.Buyers and sellers act independently.Buyers and sellers must be reasonably informed about the products for sale.Buyers and sellers must be free to enter, conduct or get out of business. Show Answer Correct Answer: D) A Large numbers of buyers and sellers exist.Buyers and sellers deal in identical products.Buyers and sellers act independently.Buyers and sellers must be reasonably informed about the products for sale.Buyers and sellers must be free to enter, conduct or get out of business. ← 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