Econ: Ch. 7 Practice Test

Perfect competition is an industry with...

• a few firms producing identical goods

• many firms producing goods that differ somewhat

• many firms producing identical goods

In perfect competition...

• there are significant restrictions on entry

• each firm can influence the price of the good

• all firms in the market sell their product at the same price

Which of the following is NOT a Market Structure?

• Perfect Competition

• Oligopoly

• Monopoly

• Corporation

Which market structure involves selling identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Which law bans monopolies?

• Tea Act
• Anti-Trust Act
• Townsend Act
• Monopoly Act

Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

In which market structure does a firm have greatest control over its product’s price?

• perfect competition
• monopoly
• oligopoly
• monopolistic competition

Interdependence and price leadership are characteristics of firms in what kind of market structure?

• monopoly
• oligopoly
• monopolistic competition
• perfect competition