Market Structure Test

All of the following are characteristic of a perfectly competitive market EXCEPT

• Numerous sellers.

• Standardized product

• Control over prices

• Perfect Information

Which of the following markets most closely resembles perfect competition?

• Fast-food restaurant.

• Automobiles

• Computers

• Agriculture

A solo proprietor means:

• An inexpensive product

• A system in which two people own a business

• A system in which only one person owns a business

• An area of economics meaning results only affect one person

All of the following are characteristics of a monopoly EXCEPT

• There is only one seller

• There are no close substitutes

• There are high barriers to entry

• A monopoly has no control over price

An example of a barrier to entry is:

• Control of a resource.

• Low start-up costs.

• A market with imperfect competition

• Government deregulation.

If a company enjoys economies of scale...

• As production increases, cost per product increases.

• As production increases, marginal revenue increases.

• As production increases, fixed cost increases.

• As production increases, cost per product decreases.

A single gas station along a lonely road in the desert is an example of a?

• Technological monopoly.

• Government monopoly.

• Geographic monopoly.

• Natural monopoly.

A natural monopoly is created when one company

• Is granted the legal right to be a monopoly.

• Can produce at a lower average cost than two competing companies.

• Has no competitors within 100 miles.

• Has a unique technology used in production.

Laws that give government the power to control monopolies and break them up are called?

• Antimonopoly laws

• Antitrust laws

• Antimerger laws

• Anticartel laws

Which of the following markets most closely resembles a Monopoly?

• Diamonds

• Breakfast cereals

• Gas stations

• Blue jeans