Market Structures Quiz

Which market structure is characterized by a large number of buyers and sellers, homogeneous products, and perfect information?

• monopoly

• perfect competition

• oligopoly

• monopolistic competition

In perfect competition, what happens to the price if a firm increases its output?

• The price increases.

• The price fluctuates.

• The price decreases.

• The price remains the same.

Which market structure has a single seller with complete control over the market?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

What is the main barrier to entry in a monopoly?

• High barriers to entry

• Moderate barriers to entry

• No barriers to entry

• Low barriers to entry

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

• oligopoly

• monopsony

• monopoly

• perfect competition

In an oligopoly, what is the term used to describe when firms collude to maximize their joint profits?

• monopoly

• collusion

• cartel

• competition

Which market structure is characterized by many firms selling differentiated products?

• monopolistic competition

• monopoly

• perfect competition

• oligopoly

What is the main source of market power in monopolistic competition?

• Price discrimination

• Product differentiation

• Economies of scale

• Perfect competition

Which market structure is most similar to perfect competition, but with product differentiation?

• monopolistic competition

• oligopoly

• monopoly

• duopoly

What is the term used to describe when a firm charges different prices to different customers for the same product?

• price variation

• customer segmentation

• product differentiation

• price discrimination