Unit 4 Review - Market Structures

This market structure is characterized by the lowest level of competition among producers.

• monopolistic competition

• monopoly

• oligopoly

• perfect competition

All of the following are characteristics of monopolistic competition except ___.

• There are many buyers and many sellers.

• The products sold are similar but differentiated.

• A market leader may emerge from among the many suppliers.

• There are many barriers to entry and exit.

List the four market structures in the order from least competitive to most competitive.

• Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition

• Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition

• Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

• Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

An industry or market that is dominated by a few firms is

• a Monopoly

• an Oligopoly

• a Competitive market

The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)

• monopoly
• oligopoly
• perfect competition
• monopolistic competition

Which scenario is an example of a monopoly? 

• A local water company is the sole provider of water for a small town.
• A dry cleaner specializes in environmentally friendly cleaning methods.  
• A farmer produces green beans for sale at a farmer's market.
• A small number of cereal companies produce most of the cereal on the market.

In the 1990s, AT&T controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of

• A monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly

When a major car company lowers its prices, other car makers will probably 

• maintain existing prices.
• raise their prices.
• go out of business.
• lower their prices.

What is monopolistic competition?

• one company selling the identical product under different names

• one company selling several different products under different names

• a very few companies selling identical products

• many companies selling similar but not identical products