Econ Unit 4 - Types of Market

Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? 

• In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition. 
• In perfect competition there are many firms, but in monopolistic competition there are only a few firms. 
• In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product. 
• In perfect competition there are few consumers, but in monopolistic competition there are many consumers. 

There are high barriers to entry in the market in perfect competition.

• True
• False

An oligopoly is a market dominated by just a few firms.

• True
• False

How many firms are in a monopoly? 

• one
• two
• three
• unlimited

A market structure in which a few large firms dominate a market

• Perfect Competition
• Monopolistic Competition
• Oligopoly

Going to the Madison's Farmers Market to buy apples, you will find this type of market structure.

• Monopoly
• Perfect Competition
• Monopolistic Competition
• Oligopoly

Since the airline industry is controlled by only a few very big companies, which type of market structure would best describe it.

• Monopoly
• Perfect Competition
• Monopolistic Competition
• Oligopoly

A combination of companies that try to corner the market and act as a monopoly

• Trust

• Cartel

• Monopolistic Competition

• Conglomerate

Corporations illegally working together to act as a monopoly

• Trust

• Cartel

• Monopolistic Competition

• Conglomerate

Any competition for business that does not involve price (better location, better guarantee, up-scale, better quality etc.)

• Pure Competition

• Monopolistic Competition

• Oligopoly

• Non-Price Competition