Chapter 7 - Market Structures

Which market has no competition?

• perfect competition
• oligopoly
• monopoly
• monopolistic competition

Which market structure has the most competition?

• monopoly

• perfect competition

• oligopoly

• monopolistic competition

If Farmer McDonald expresses a desire to sell his corn at a local farmer's market, he must be aware that the product is similar to other farmers and that he will have no control over the price. The market structure he is MOST likely participating in is

• monopolistic competition

• oligopoly

• perfect competition

• monopoly

Which scenario is an example of a monopoly? 

• A local water company is the sole provider of water for a small town.
• A dry cleaner specializes in environmentally friendly cleaning methods.  
• A farmer produces green beans for sale at a farmer's market.
• A small number of cereal companies produce most of the cereal on the market.

A market structure in which only one producer supplies a good that is in demand is called a 

• monopoly.
• oligopoly.
• competition.
• monopolistic competition.

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

Under perfect competition,

• products are similar but not identical.
• numerous restrictions prevent firms from entering the market.
• no seller can sell a product above the prevailing market price.
• a single seller can affect price.

Which of the following is an example of a product sold in monopolistic competition?

• Cell Phone Service

• Eggs

• Fast Food restaurants

• Airline Tickets

Which market structure involves selling identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

What kind of market structure is efficient with 1 business supplying?

• monopoly

• oligopoly

• monopolistic competition

• perfect competition