Economics Competition

A business in monopolistic competition has no control over price if it wants to sell its products. 

• True
• False

In a monopoly, customers will pay a higher price because there are no alternative products to those of the supplier. 

• True
• False

A cable television company usually operates in a pure competition environment. 

• True
• False

The airline industry is an example of an oligopoly. 

• True
• False

The most common type of economic competition facing most businesses is pure competition. 

• True
• False

Businesses in monopolistic competition should focus on making their products different from and better than competitors' products.

• True
• False

The market environment in which a business without competitors operates is 

• pure competition
• an oligopoly
• a monopoly 
• monopolistic competition

The market environment in which most retail businesses operate is 

• pure competition
• an oligopoly
• a monopoly
• monopolistic competition

As a consumer, you will usually choose the 

• least expensive option
• option providing the most satisfaction at the best value 
• option that provides the highest quality 
• most readily available option 

In a market where demand exceeds supply 

• consumers can expect to pay higher prices 
• businesses will want to increase supply 
• some consumers will not be able to satisfy their needs 
• all are correct