G9 SS Econ MT3

Econ draft

Multiple Select

What effect does the market structure have on prices?

• More competition (more firms), so lower prices.

• Less firms, so better choices for consumers

• More buyers, so lower prices.

• Less producers, so lower prices.

Multiple Choice

What is one characteristic all types of monopolies have in common?

• High barriers to entry

• Differentiated products

• many firms

• easy market entry and exit

Multiple Choice

Which market structures have most control over prices?

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Multiple Choice

Which market structures have some control over prices?

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Multiple Choice

Which market structures have control over prices when there is collusion?

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Multiple Choice

Which market structure has competition at its greatest possible level.

• Perfect competition

• monopoly

• monopolistic competition

• oligopoly

Multiple Choice

Why do firms always want to produce at the point where MR=MC?

• Profit is at its highest

• Cost is at its highest

• Revenue is at its highest

• Quantity is at its highest

Open Ended

How does price elasticity of demand affect consumer purchases?

Multiple Choice

How does market structure affect the price elasticity of demand?

• more competition means more elastic demand

• less competition means more elastic demand

• more competition means more inelastic demand

• less competition means more inelastic demand

Open Ended

What determines prices in a perfectly competitive market?

Multiple Choice

How are pure and monopolistic competition different?

• monopolistic competition has only one type of product and pure competition has the same product

• monopolistic competition has only many types of product and pure competition has the same product

• monopolistic competition has only one type of product and pure competition has different products

• monopolistic competition has only one type of product and pure competition has only one type of product

Multiple Choice

Does a firm in perfect competition have market power?

• yes

• no

Multiple Choice

Are their barriers to entry in perfect competition?

• yes

• no

Open Ended

What determines prices in a monopoly market?

Multiple Choice

Are their barriers to entry in monopoly?

• yes

• no

Multiple Choice

Does a monopoly have market power?

• a lot market power

• no market power

• some market power

• very little market power

Multiple Choice

Which of the following is an example of a patent?

• Banana farming

• A new medicine

• A new type display

• A water bottle that can keep liquid hot for a week.

Multiple Choice

Which one is not a kind of government monopoly?

• An service provider that can only develop infrastructure if it is the only firm.

• A firm that develops a new technology that lowers its costs, compete at lower prices, and gain market share.

• An industrial organization of producers that lobbies the government for favorable tax incentives.

• A company that is the inventor of a new product and licenses to other companies to make after paying a fee.

Open Ended

Why is complex technology a barrier to entry?

Poll

Why are there government monopolies?

• for efficiency

• for profit

• for innovation

Open Ended

What is an example of natural monopoly?

Open Ended

Give an example of a business has a high start-up costs.

Poll

Who's answer best describes a business with a high start-up cost?

• Andrea

• April

• Ashley

• Ethan

• Ian

Poll

Who's answer best describes a business with a high start-up cost?

• Jason

• Kevin

• Wesley

• Willy

• Zachary

Open Ended

What determines prices in a monopolistically competitive market?

Multiple Choice

Are their barriers to entry in monopolistic competition?

• yes

• no

Multiple Choice

How is monopolistic competition different from pure competition?

• may buyers and sellers with complete information

• few barriers to entry

• some control of price due to product differentiation

• many firms

Open Ended

Why do competitors want to prevent a price war?

Open Ended

What do monopolistic competitors due to prevent a price war?

Multiple Choice

Which is not a condition of monopolistic competition?

• identical products

• differentiated products

• one product

• discriminated products

Open Ended

Why firms in monopolistic competition have market power?

Open Ended

What determines prices in an oligopoly market?

Multiple Choice

Are their barriers to entry in oligopoly?

• yes

• no

Multiple Choice

What is price fixing?

• Outcome of collusion

• Outcome of sales

• Outcome of competition

• Outcome of non price competition

Multiple Choice

What is the difference between differentiated product and identical product?

• differentiated products have differences between each product

• identical products have no differences between both

• there are no differences

• there is only one product

Open Ended

What power does a market leader in an oligopoly have?

Open Ended

How many firms are there in an oligopoly?

Multiple Choice

What kind of action is deregulation?

• cut regulations that reduce competition?

• enforce antitrust laws

• break up monopolies

• block mergers that create unfair market power

Open Ended

What is a benefit of government regulation?

Poll

Who's answer best describes a positive benefit of government regulation?

• Andrea

• April

• Ashley

• Ethan

• Ian

Poll

Who's answer best describes a positive benefit of government regulation?

• Jason

• Kevin

• Wesley

• Willy

• Zachary

Open Ended

What is a negative of government regulation?

Open Ended

What is a negative of deregulation?

Open Ended

What is a benefit of deregulation?

Poll

Who's answer best describes a positive benefit of government deregulation?

• Jason

• Kevin

• Wesley

• Willy

• Zachary

Poll

Who's answer best describes a positive benefit of government deregulation?

• Andrea

• April

• Ashley

• Ethan

• Ian