Economics - Market Structure

Which of the following individuals formed a trust in the steel industry during the late 19th century?

• Andrew Carnegie

• Howard Hughes

• Henry Ford

• Charles Dickens

Which market structure did John D. Rockefeller's Standard Oil Company fall under?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Which law bans monopolies?

• Johnson Monopoly Act

• Sherman Antitrust Act

• Townsend Act

• Fairness in Competition Act

Which is NOT a characteristic of a monopoly?

• Seller sets the market price
• Entry into the market is easy
• Firm sells a unique product
• One seller

Perfect competition involves:

• Sellers working together to set prices
• A large number of buyers & sellers
• Difficulty entering & exiting the market
• Little information is available to buyers

The market for milk is an example of perfect competition. Why?

• Sellers offer a nearly identical product
• Anyone can start a dairy farm or leave the dairy business at any time
• Many people buy and sell milk
• All of the above

List the four market structures in order from least competitive to most competitive.

• Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
• Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
• Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
• Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly

If a major car company such as Ford lowers their prices, what are other car companies likely to do?

• Raise their prices
• Go out of business
• Maintain their current prices
• Lower their prices

There are many sellers of blue jeans.  Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe?

• Perfect Competition
• Oligopoly
• Monopoly
• Monopolistic Competition

The attempt by firms to distinguish their goods and services from those of other firms

• non price competition 
• Free Rider 
• Product differentiation 
• Monopolistic Competition