Market Structures

Colin's KTV is one of the many entertainment businesses in the country and he has a downward sloping demand curve. Which market structure is this?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

In a perfect competition market structure, when firms join or leave due to ________ barriers to entry, market __________ will change/shift.

• high / demand

• free / demand

• high / supply

• free / supply

Which of the market structures will have possibility to sustain or make 'supernormal profit' in the long run?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

Karen uses both price and product differentiation to compete with her business rivals. What market structure does her business operate in?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

ABC business is one of the few large firms in the country. If it increases his price, his competitors tend to __________. If it decreases his price, his competitors tend to ____________. Hence, ABC will ___________ its price in order to compete.

• follow / follow / change

• not follow / follow / change

• not follow / follow / maintain

• follow / not follow / maintain

When P=MR=AR, what market structure is this?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

Which market structures would have MR lower than its Price?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

John opens a bubble tea shop in his neighbourhood. As the trend of drinking bubble tea rises, more similar shops started opening. What will happen to John's demand curve?

• No change

• Shifts right

• Shifts left

When P>ATC, this also means that total revenue is ________ than total cost.

• less

• more

• equal

For a firm to operate at allocative efficiency, P must be _________ MC whereby there is _____________ of deadweight loss (market failure).

• more / no presence

• equal / presence

• equal / no presence

• less / no presence