5.1 and 5.2 Quiz

A market structure describes the key characteristics of a market which include-

• how difficult it is to enter a market

• similarity of products sold

• how a command economy works

• number of firms in the market

Which of the following is an example of a firm in perfect competition?

• Easy to enter the market

• Large and small firms

• Price maker

• Differentiated products

All of the following are examples of barriers to entry of a market EXCEPT--

• Government

• Technology

• Supply

• Finances

A company in a perfectly competitive market would cut prices to sell more products.

• True

• False

A company is a perfectly competitive market would raise prices to make more revenue.

• True

• False

Which of the following are examples of a monopoly?

• Single seller

• Easy market entry

• Price maker

• Unique product

Which of the following is a decision a consumer has in a monopolistic market?

• Buy the product

• Don't buy the product

• Sue the company

• None of these

Which of the following is an example of a natural monopoly?

• Gas company

• Water company

• Candy company

• Cable company

If your company had a price maker product in a monopoly, what would you do?

• Lower prices

• Raise Prices

• Keep the price the same

• Get rid of the product

What are the characteristics of monopolistic competition?

• Identical products

• Price maker

• Easy entry to market

• Many small firms