Market Structures Quiz

What is perfect competition?

• Perfect competition is a market structure where there are few buyers and sellers, heterogeneous products, imperfect information, high barriers to entry or exit, and individual firms have control over the market price.

• Perfect competition is a market structure where there are many buyers and sellers, differentiated products, limited information, high barriers to entry or exit, and individual firms have control over the market price.

• Perfect competition is a market structure where there are few buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and individual firms have control over the market price.

• Perfect competition is a market structure where there are many buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no individual firm has control over the market price.

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

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

What is an example of an oligopoly market?

• Fast food industry

• Smartphone industry

• Clothing industry

• Automobile industry

What is monopolistic competition?

• Monopolistic competition is a market structure in which there are many firms selling identical products.

• Monopolistic competition is a market structure in which there are few firms selling identical products.

• Monopolistic competition is a market structure in which there are many firms selling differentiated products.

• Monopolistic competition is a market structure in which there is only one firm selling a product.

What is market power?

• The ability of a firm or a group of firms to minimize costs in a market.

• The ability of a firm or a group of firms to collaborate with competitors in a market.

• The ability of a firm or a group of firms to attract customers in a market.

• The ability of a firm or a group of firms to influence the price and output in a market.

What are the characteristics of monopolistic competition?

• Monopolistic competition is a market structure in which there are many firms selling identical products.

• Monopolistic competition is a market structure in which there are few firms selling identical products.

• Monopolistic competition is a market structure in which there are many firms selling differentiated products.

• Monopolistic competition is a market structure in which there is only one firm selling a product.