Topic 4 Econ Review

Which of the following industries is an example of a monopoly?

• utilities/water

• departments stores

• auto industry

• commercial airlines

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

• products are very similar so there must be product differentiation

• very competitive

• lots of advertising

• identical products

Which of the following is not a characteristic of an oligopoly?

• many sellers

• not as much competition - firms have some control over prices

• lots of advertising

• many barriers to entry

A merger that joins companies that are at different steps of producing the same product is called a...

• vertical merger.

• conglomerate.

• horizontal merger.

• corporation.

A merger that joins companies that produce very similar products is called...

• conglomerate.

• vertical merger.

• horizontal merger.

• corporation.

What does this curve represent?

• demand
• supply
• equilibrium
• shortage

What does this curve represent?

• supply
• equilibrium
• demand
• surplus

What is an example of a monopoly?

• Taco Bell
• National Hockey League (NHL)
• Lucky Brand Jeans
• Holiday Inn

Which type of market structures has many many producers(companies) that sell identical products and has no control over price?

• perfect competition
• monopolistic competition
• oligopoly
• monopoly

Which type of market structures has very few producers(companies) that control the majority of the market?
Hint: think of the soda market

• perfect competition
• monopolistic competition
• oligopoly
• monopoly