3.5 Types of Market Structures: Labor Market Trends and Global Influences

Multiple Choice

Which of the following is NOT one of the four main market structures shown in the diagram?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Duopoly

Multiple Select

Which of the following are characteristics of perfect competition?

• Many small firms

• Identical products

• High barriers to entry

• Firms are price takers

Open Ended

Explain why firms in a perfectly competitive market are considered 'price takers.'

Multiple Choice

Which of the following is NOT a characteristic of monopolistic competition?

• A few large producers dominate the market

• Relatively large number of sellers

• Differentiated products

• Low barriers to entry

Open Ended

Explain how non-price competition helps firms in monopolistic competition differentiate their products and attract customers.

Open Ended

Compare and contrast the characteristics of monopolistic competition and oligopoly. Provide examples of industries for each market structure.

Multiple Select

Which of the following are barriers to entry that help create oligopolies?

• Economies of scale

• High start-up costs

• Low product differentiation

• Ownership of raw materials

Multiple Choice

What is the main difference between price leadership and collusion in an oligopoly?

• Price leadership is legal, while collusion is illegal

• Collusion involves advertising, while price leadership does not

• Price leadership requires identical products, while collusion does not

• Collusion is used in monopolistic competition, while price leadership is not

Multiple Choice

Which of the following is NOT a characteristic of a monopoly?

• Many firms in the market

• Unique product with no close substitutes

• High barriers to entry

• Minimal advertising needed

Multiple Select

Which of the following are examples of negative externalities?

• Pollution

• Prison Labor

• Unique product

• OverCrowding

Open Ended

How does the number of competitors in a market affect prices and choices for consumers?

Multiple Choice

Which of the following is an example of a positive externality?

• Flu Vaccines

• Traffic Congestion

• Air Pollution

• Overfishing