Market Structures

Markets with more competition typically

• have lower prices

• have higher prices

• have price discrimination practices

• have price fixing practices

An agreement among firms to charge the same price is called....

• royalties

• price war

• price fixing

• differentiation

Which of these is NOT one of the conditions of PURE COMPETITION

• Easy market entry and exit

• Many buyers and sellers

• informed sellers and buyers

• differentiated products

A market structure in which many companies sell products that are similar but not identical

• monopolistic competition

• pure competition

• oligopoly

• monopolhy

Which of these market structures has more market power over setting prices?

• Pure competition

• Monopoly

• Monopolistic competition

• Oligopoly

What is the main characteristic of economies of scale?

• Falling average costs as production increases

• Increasing average costs as production increases

• No marginal costs for operation

• Low start-up costs act as entry barriers

What is a natural monopoly?

• A market that runs more efficient with only a few firms.

• A market that runs more efficiently with as many firms as possible.

• A market that runs more efficiently with only one firm.

• Any market that deals with natural resources and where have many firms is still efficient.

Which of these is NOT an entry barrier created by government?

• License

• Patents

• Franchise

• Price discrimination

Which of these is NOT an example of a targeted discount?

• Discounted airfare for buyers who buy their tickets a few weeks in advance

• Manufactures who will refund part of the price to those customers who fill a rebate form

• A grocery store that cuts prices in the dairy aisle

• A store that gives discounts to senior citizens on Wednesdays

Monopolists are able to divide consumers into groups and charge different prices. What is the name of this market practice?

• non-price competition

• price competition

• price discrimination

• price fixing