Characteristics of Market Structures

Characteristics of Market Structures

Multiple Choice

Perfect competition is characterized by

• Many large firms.

  Identical products

  Easy entry.

• Few large firms.

  Identical products

  Easy entry.

• Few large firms.

  Identical products

  Hard entry.

Multiple Choice

In a Perfect Competition, the biggest factor in setting price levels is..

• supply/demand

• the stock market

• celebrity endorsements

• price of substitute products

Multiple Choice

In a Perfect Competition, products are basically..

• differentiated

• identical

• similar

• opposite

Multiple Choice

Monopolistic competition is characterized by

• A large number of firms.

  Easy entry into the industry.

  Differentiated products.

• A large number of firms.

  Easy entry into the industry.

  Similar products.

Multiple Choice

This market structure has a few firms who dominate 70-80% of the industry.

• Monopoly

• Monopolistic Competitio

• Perfect Competitio

• Oligopoly

Multiple Choice

Choose the example that goes best with an oligopoly.

• apples
• cell phone providers
• utilities
• clothing

Multiple Choice

Monopoly is characterised by

• Only one firm.

  No substitutes.

  The firm is a price maker.

• Only one firm.

  No substitutes.

  The firm is a price taker.

Multiple Choice

A barrier to entry is

• an economic term for economies of scale

• illegal in most markets

• anything that prevents new firms from entering the market

• a factor that increases competition