Business Market Structure

Consider a scenario where a single company, say 'XYZ Corp.', controls the entire market for a particular product. Why is this considered harmful to consumers?

• 'XYZ Corp.' can charge high prices for their product.

• 'XYZ Corp.' pays their employees less than other businesses.

• 'XYZ Corp.' moves factories to other countries.

• 'XYZ Corp.' uses false advertising.

In the world of smartphone apps, the App Store represents a perfect competition market structure in which ____________ developers sell ____________ apps.

• no, any

• some, similar

• many, the same

• few, many

In which market structure are products similar but differentiated (through branding, quality, etc.)?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfect competition

Imagine you are shopping for groceries. Which type of market would likely offer you the lowest prices?

• A store that is the only one in town (Monopoly)

• A store that is one of many, but offers unique products (Monopolistic competition)

• A store that is one of a few, with similar products (Oligopoly)

• A store in a town with many similar stores (Perfect competition)

An oligopoly can be described as an industry in which

• one company produces most of the output.

• 2 companies produce most of the output.

• a handful of companies produce most of the output.

• a large number of companies produce half of the output.

Consider a city where only one company provides internet services. Which of the following is NOT a problem caused by this monopoly?

• Low quality of internet services

• Poor customer service

• Fewer new internet packages or services

• More competition among internet service providers

Imagine Kellogg's, General Mills, and Post Holdings control almost 70% of the cereal market. This means the market structure of the cereal industry is

• a monopoly.

• an oligopoly.

• monopolistic competition

• perfect competition.

In which type of market structure does a business have total control over price?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfect competition

Theoretically, the fruit and vegetable industry would most likely be a part of which market structure?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfect competition

John is the only seller of a unique type of gemstone in his town. There are no close substitutes for this gemstone. Which market structure does this scenario represent?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfect competition