Economic Markets: Competition and Monopolies

The term market structure refers to

• the theoretical characteristics of firms in the same industry.
• the theoretical characteristics of firms in different industries.
• the profit-maximizing behavior of firms that use marginal analysis.
• the nature and degree of competition among firms in the same industry.

Which of the following is NOT a Market Structure?

• Perfect Competition

• Oligopoly

• Monopoly

• Corporation

What is industry?

• It is the demand side of the market.
• It is the theoretical side of the market.
• It is the supply side of the market.
• It is the competitive side of the market.

What is pure competition?

• A theoretical market structure with very large numbers and identical products
• A theoretical market structure with identical products, and freedom of entry and exit
• A theoretical market structure with identical products, very large numbers, and freedom of entry and exit
• none of the above

Why is pure competition important?

• Economists use it to evaluate less-competitive market structures.
• Economists use it to evaluate the three conditions for competition.
• Economists use it to evaluate more-competitive market structures.
• Economists use it to evaluate perfect competition.

Which market structure involves selling identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

In perfect competition, prices are controlled by

• supply and demand

• buyers

• sellers

• government

How do monopolistic competitors try to make their products stand out?

• They lower their prices.
• They use nonprice competition such as advertising.
• They raise their prices.
• They maximize profits.

In which of the following market structures is advertising most important?

• pure monopoly

• monopolistic competition

• oligopoly

• cartel

What is oligopoly?

• It is a market structure in which products are always similar.
• It is a market structure in which a very few large sellers dominate the industry.
• It is a market structure in which one seller controls the industry.
• It is a market structure in which prices are similar between sellers.