Market Structures and Business Organizations_Study Guide

In monopolistic competition, compared to pure competition, how does the nature of the products differ?

• The products are identical in nature.

• The products are completely different.

• The products are similar but not identical.

• The nature of the products does not differ.

In a purely competitive market, what determines the price of a product?

• Government regulations

• Consumer preferences

• Supply and demand

• Quality of the product

In a monopolistic market, what strategy do sellers use to distinguish their products from their competitors'?

• Product imitation

• Product differentiation

• Product collusion

• Product perfection

In a monopolistic competition, what strategies do sellers employ to stand out?

• Investing in marketing

• Engaging in nonprice competition

• Making their product unique

• All of the above

Which of the following is a market structure dominated by a few large sellers?

• monopoly

• perfect competition

• oligopoly

• monopolistic competition

Characteristics of a noncompetitive market include

• limited suppliers

• price setters

• barriers to entry

• all of the above

How might oligopolies control prices?

• through nonprice competition

• through collusion

• through price-fixing

• all of the above

What is a cooperative?

• Companies that are run by a government

• A non-profit organization formed to benefit their members like Costco

• A business owned by 2 people

• A type of sole proprietorship

When sellers secretly agree to set production levels or prices, it is called

• price leadership.

• a cartel

• collusion

• compliance

What term is used to describe the practice of charging different prices to different customers for the same product?

• price competition

• price leadership

• price discrimination

• interdependent pricing