This quiz works best with JavaScript enabled. Home > Finance > Economics > Market Dynamics > Market Structures > Market Structures – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Market Structures Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main goal of firms in a monopolistic competition market structure? A) To differentiate their products and create a loyal customer base to maintain market power and earn profits. B) To sell identical products at the lowest price possible. C) To collaborate with other firms to eliminate competition. D) To reduce the quality of their products to increase sales. Show Answer Correct Answer: A) To differentiate their products and create a loyal customer base to maintain market power and earn profits. 2. Which of these describes a perfectly competitive market? A) Businesses spend money to advertise. B) Many products are similar. C) There are a few producers. D) Products are exactly the same. Show Answer Correct Answer: D) Products are exactly the same. 3. In this market structure, sellers can enter and exit the market freely A) Monopolistic Compeition. B) Oligopoly. C) Perfect Competition. D) Monopoly. Show Answer Correct Answer: C) Perfect Competition. 4. The Supply Curve has moved left. Where is the new equilibrium price and quantity? A) Lower, lower. B) Higher, higher. C) Lower, higher. D) Higher, lower. Show Answer Correct Answer: D) Higher, lower. 5. A contract that gives a single firm the right to sell its good within an exclusive market A) Franchise. B) Market power. C) License. D) Monopoly. Show Answer Correct Answer: A) Franchise. 6. Define Income Elasticity of Demand A) YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus. B) YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus. C) YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus. D) YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus. Show Answer Correct Answer: A) YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus. 7. Which of the following is NOT a definition for market? A) Any structure that allows buyers and sellers to exchange goods, services and information. B) Any mechanism that facilitates the interaction of buyers and sellers with a view to the purchase and sale of good or service. C) The amount of persons/firms who provide a product for sale. D) All persons who are willing and able to purchase a particular goods or service. Show Answer Correct Answer: C) The amount of persons/firms who provide a product for sale. 8. These could be as a result of legal obstacles from specific laws, patents, copyrights, and trademarks, or they could be due to natural obstacles like extensive economies of scale for large producers or dominating a key resource needed to produce the good. A) Number of sellers. B) Barriers to entry. C) Product differentiation. D) Scarcity. Show Answer Correct Answer: B) Barriers to entry. 9. Which type of market structures has very few producers (companies) that control the majority of the market?Hint:think of the soda market/phone companies A) Oligopoly. B) Monopolistic competition. C) Monopoly. D) Perfect competition. Show Answer Correct Answer: A) Oligopoly. 10. Do you think this firm has control over price? A) Yes. B) No. C) Maybe. D) None of above. Show Answer Correct Answer: B) No. 11. The marginal revenue curve in monopoly: A) Equals the demand curve. B) Is parallel with the demand curve. C) Lies below and converges with the demand curve. D) Lies below and diverges from the demand curve. Show Answer Correct Answer: D) Lies below and diverges from the demand curve. 12. Use the following headlines to answer the question below. Many sellers in marketProduct must be different to attract consumersLots of advertisingEasy to enter and exit the market The above headlines are all examples of A) Pure (perfect) competition. B) Oligopoly. C) Monopoly. D) Monopolistic competition. Show Answer Correct Answer: D) Monopolistic competition. 13. A market dominated by a few large, profitable firms A) Oligopoly. B) Natural Monopoly. C) Monopoly. D) Government Monopoly. Show Answer Correct Answer: A) Oligopoly. 14. NPF-AI developed to mimic teachers. What curve is impacted in the education labour market and how? A) Demand Left. B) Demand Right. C) Supply Left. D) Supply Right. Show Answer Correct Answer: A) Demand Left. 15. An agreement by firms to charge uniform prices for a product is called. A) Positive externality. B) Monopoly. C) Negative externality. D) Price-fixing. Show Answer Correct Answer: D) Price-fixing. 16. What is the equilibrium position of a Perfectly Competitive Firm in the Short Run? A) The point where MC = MR and MC is rising. B) The point where AC = AR and AC is falling. C) The point where MC = MR and MC is falling. D) The point where AC = AR and AC is rising. Show Answer Correct Answer: A) The point where MC = MR and MC is rising. 17. A monopoly that is based on the ownership or control of a manufacturing method, process, or other scientific advance is a A) Geographic monopoly. B) Technological monopoly tagsSSEMI3. C) Natural monopoly. D) Government monopoly. Show Answer Correct Answer: B) Technological monopoly tagsSSEMI3. 18. When firms agree to charge the same or similar prices for a product, this is known as A) Independent behavior. B) Price-fixing. C) Natural monopoly. D) Let it happen. Show Answer Correct Answer: B) Price-fixing. 19. The cartel model of oligopoly leads to: A) All the firms in the industry acting as one to set a monopoly price. B) Each producer acting independently of others. C) Firms following the low-price firm in the industry. D) Differences in cost of production discouraging individual firms from cheating. Show Answer Correct Answer: A) All the firms in the industry acting as one to set a monopoly price. 20. Which of the following is NOT one of the reasons why markets fail? A) Not enough competition. B) Not enough information. C) Resources that can't or won't move. D) Too much competition. Show Answer Correct Answer: D) Too much competition. 21. A market structure that has many sellers, has a standardized products and is easy to enter and exit A) Monopolistic Competition. B) Oligopoly. C) Perfect Competition. D) Monopoly. E) Barriers to entry. Show Answer Correct Answer: C) Perfect Competition. 22. System of business where individuals (owners) are free to decide what to produce, how to produce it, and what price to sell it A) Socialism. B) Communism. C) Mixed Economy. D) Free Enterprise. Show Answer Correct Answer: D) Free Enterprise. 23. Ethan, Luna, and Mason are running a lemonade stand in a perfectly competitive market. What is the shape of the demand curve for their lemonade stand? A) Upward sloping. B) Downward sloping. C) Perfectly inelastic (vertical). D) Perfectly elastic (horizontal). Show Answer Correct Answer: D) Perfectly elastic (horizontal). 24. A perfectly competitive demand curve is considered to be ..... while a monopoly demand curve is considered to be ..... A) Flat, curved. B) Flat, downward-sloping. C) Downwardly sloping, downward-sloping. D) None of above. Show Answer Correct Answer: B) Flat, downward-sloping. 25. All of the following are conditions of monopolistic competition EXCEPT A) Differentiated products. B) Many sellers (firms). C) Slight control over price. D) High barriers to entry. Show Answer Correct Answer: D) High barriers to entry. 26. A market structure in which a small number of firms face competition from potential entrants. What does this describe? A) Perfect oligopoly. B) A contestable market. C) A monopoly. D) Monopolistic competition. Show Answer Correct Answer: B) A contestable market. 27. What type of lifespan do most partnerships have? A) Life sentence. B) Eternal life. C) Unlimited life. D) Limited life. Show Answer Correct Answer: D) Limited life. 28. A large number of businesses selling the same products at the same price A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: C) Perfect competition. 29. SSEMI3 b This is a market structure in which a single seller controls the market. A) Perfect Competition. B) Oligopoly. C) Monopolistic Competition. D) Monopoly. Show Answer Correct Answer: D) Monopoly. 30. Ryan Brown and Leighton Jones have a partnership. Leighton embezzles the company's profits and moves to Mexico. Which of the following describes Ryan's liability? A) Because Ryan didn't do anything illegal, he is not responsible. B) Ryan's personal assets are at risk. C) Ryan's personal assets are completely safe. D) None of above. Show Answer Correct Answer: B) Ryan's personal assets are at risk. ← 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