Market Structure Easy Level

Which market structure is characterized by a large number of firms, similar but not identical products, and easy entry and exit?

• Perfect competition
• Monopoly
• Oligopoly
• Monopolistic competition
• Duopoly

True or False: In a perfectly competitive market, firms have significant market power.

• False
• True

Which market structure is characterized by a single firm as the sole seller of a product with no close substitutes?

• Perfect competition
• Monopoly
• Oligopoly
• Monopolistic competition
• Duopoly

What is a characteristic of monopolistic competition?

• Many firms with similar but not identical products
• One firm with a unique product
• A few firms with similar products
• One firm with a unique product
• Many firms with identical products

In which market structure do firms engage in strategic interactions and compete based on pricing, output, and product differentiation?

• Perfect competition
• Monopoly
• Oligopoly
• Monopolistic competition
• Duopoly

What is the primary characteristic of a monopoly market structure?

• A large number of firms
• Identical products
• Easy entry and exit
• A single firm as the sole seller
• Many close substitutes

True or False: Oligopoly is a market structure characterized by many firms competing with identical products.

• False
• True

In which market structure is there a high degree of market power and firms often engage in non-price competition?

• Perfect competition
• Monopoly
• Oligopoly
• Monopolistic competition
• Duopoly

What is a key feature of perfect competition?

• A few firms with similar products
• Many firms with identical products
• A single firm as the sole seller
• Many close substitutes
• Easy entry and exit

True or False: In a monopolistic competition market, products are homogeneous, and firms have no control over the prices.

• False
• True