Ch 7: Market Structures Review

In a monopoly market, the market price will be ___________ the price in a perfectly competitive market.

• greater than or less than

• greater than

• less than

• equal to

Which of the following companies has NOT been forced to split up by the U.S. government?

• Standard Oil Trust

• Microsoft

• AT&T

• American Tobacco Company

Why do companies practice price discrimination?

• It allows companies to defend an illegal monopoly.

• It enables companies to charge all consumers the same price.

• It recognizes that groups of customers are willing and able to pay different amounts and maximizes profits by charging each group a different price.

• It provides individual producers with an advantage in perfectly competitive markets.

Companies in perfectly competitive markets have _______ control prices.

• total control

• some

• little

• none

Which of the following is NOT an example of barriers to entry?

• A person who wants to practice medicine is required to attend medical school, complete an internship, and pass a state exam.

• In some countries, laws require retail stores to be closed on Sundays.

• Cable companies must lay miles of underground cable before they can serve a single customer.

• An entrepreneur wanting to own and operate a clothing store must rent a building, hire workers, and buy clothing to sell.

Cartels are difficult to operate, because...

• They are illegal worldwide.

• Firms in a cartel are likely to lose money.

• The products are perfectly competitive.

• They only work if members keep to their agreed output.

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

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

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Using the pizza store graphic, what market structure best fits the pizza industry?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition