Economics: Ch. 7 - Market Structures

Which of the following is NOT a Market Structure?

• Perfect Competition

• Oligopoly

• Monopoly

• Corporation

Which market structure involves selling identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

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

Which of the following may be a negative externality resulting from the expansion of a local airport?

• There is a rise in retail business in the area.

• Additional employment is needed at the airport.

• There is an expected benefit for a third party not directly involved in the expansion project.

• The airport increases noise pollution in the area.

Which of the following is an example of a public good?

• shopping mall

• highway

• professional sporting event

• factory

A merger between for or more companies producing or marketing different/unrelated products is referred as a(n)...

• conglomerate.

• vertical merger.

• corporation.

• horizontal merger.

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

• vertical merger.

• conglomerate.

• horizontal merger.

• corporation.