G9 SS Econ MT3

Econ draft

Fill in the Blanks

What does market concentration mean?

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

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Which market system has the least amount of competition?

Multiple Choice

Which market structures have most control over prices?

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

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Which market system has the least amount of firms?

Multiple Choice

Which market structures have some control over prices?

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

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Which market system has the most amount of firms?

Multiple Choice

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

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

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Which market system best describes most firms that sell similar products?

Multiple Choice

Which market structure has competition at its greatest possible level.

• Perfect competition

• monopoly

• monopolistic competition

• oligopoly

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Barriers to entry can lead to what kind of competition?

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What do we call the characteristics that cause a producer's average cost to drop as production rises.

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?

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What determines the quantity a perfectly competitive firm produces at?

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What is a product that is considered the same regardless of who makes or sells.

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?

Fill in the Blanks

What determines the quantity a monopoly firm produces at?

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

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What is a government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

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?

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What is it called when the market is most efficient with only one firm because of economy of scale?

Poll

Why are there government monopolies?

• for efficiency

• for profit

• for innovation

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What is when the monopolist may be able to divide consumers into two or more groups and charge a different price to each group

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

Fill in the Blanks

What determines the quantity a monopolistically competitive firm produces at?

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

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What determines the quantity a monopolistically competitive firm produces at?

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?

Fill in the Blanks

What is it when government no longer decides what role each company can play in a market or how much it can change its consumers?

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