Business Economics - Market Structures

An industry that is dominated by a few large firms is

• A competitive market

• A monopoly

• An oligopoly

Competition promotes innovation. 

• True 
• False 

The real or imagined differences between competing products in the same industry.

• Price competition

• Product differentiation

• Marketing differential

• Oligopoly

Which of the following is most likely an example of a monopoly?

• A Starbucks across from Dunkin Donuts

• A gas station in a town by itself

• 3 fast food restaurants all on the same street

• A Sainsbury's 4 miles away from a Tesco's

Businesses conspiring among themselves to set the prices of competing products at a higher level

• Price fixing

• Trust

• Market sharing

• Oligopoly

The most recognizable form of non-price competition is? 

• More Locations 
• Better Customer Service
• Advertising 
• Low Price 

The goal of a company in an oligopoly industry is to

• Increase market share and profits.

• Obtain the highest price possible.

• Always follow rivals if they raise price.

• Be the market leader in innovation.

The term used for costs that change with the number of output

• Fixed Cost

• Average Cost

• Variable Cost

• Marginal Cost

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

The cartel model of oligopoly leads to:

• All the firms in the industry acting as one to set a monopoly price

• Each producer acting independently of others

• Firms following the low-price firm in the industry

• Differences in cost of production discouraging individual firms from cheating