Monopoly Market Structure Quiz

Which market structure is characterized by a single seller with complete control over the market?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

What is the main barrier to entry in a monopoly market?

• High product differentiation

• Low economies of scale

• Low market power

• High barriers to entry

Which of the following is a strategy used by monopolies to charge different prices to different customers?

• Price discrimination

• Price fixing

• Collusion

• Predatory pricing

Which concept refers to the cost advantages that a monopoly enjoys due to its large scale of production?

• Economies of scope

• Economies of scale

• Economies of agglomeration

• Economies of density

Which type of monopoly arises when a single firm can produce output at a lower cost than any potential competitor?

• Legal monopoly

• Natural monopoly

• Government monopoly

• Technological monopoly

What is the primary source of market power for a monopoly?

• Product differentiation

• Low barriers to entry

• Control over resources

• Collusion with competitors

Which of the following is NOT a characteristic of a monopoly market?

• High barriers to entry

• Price taker

• Single seller

• Unique product

Which market structure is characterized by a few large firms dominating the market?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

Which term refers to the ability of a monopoly to control the price and quantity of a product in the market?

• Market power

• Market equilibrium

• Market share

• Market concentration

Which of the following is an example of a natural monopoly?

• Electricity distribution

• Smartphone manufacturing

• Fast food restaurants

• Clothing retail