Econ Unit 3 Review

Which of the following best describes an oligopoly?

• many monopolistically competitive firms

• a few firms sharing monopoly power

• a former monopoly that has been broken up by the government

• a government-granted franchise or monopoly

Collusion most frequently occurs in industries that are

• oligopolistic

• monopolistically competitive

• monopolistic

• perfectly competitive

Which of the following is best considered to be a monopoly?

• Market for computer operating systems

• Restaurant industry

• Market for televisions

• Vegetable market

This type of monopoly occurs because there isn't enough profit in the market for multiple firms to recoup their fixed costs

• Natural Monopoly

• Technological Monopoly

• Geographic Monopoly

• State Monopoly

Perfect competition is characterized by

• a large number of sellers and buyers.
• diverse products.
• sellers acting together to set prices.
• uninformed buyers and sellers.

The airline industry is most likely in the market structure called

• perfect competition
• oligopoly
• monopolistic competition
• monopoly

Price fixing and collusion often occur in this type of market structure

• monopoly
• oligipoly
• perfect competition
• monopolistic competition

In this market structure there are many buyers and sellers with identical products

• perfect competition
• monopolistic competition
• monopoly
• oligopoly

Emphasizing price as an issue and matching or beating competitors' prices.

• Direct Competition

• Indirect Competition

• Non-Price Competition

• Price Competition

Emphasizing features, quality and packaging of a product over competitor's products.

• Direct Competition

• Indirect Competition

• Price Competition

• Non-Price Competition