BBD1 Quiz

What is a characteristic of a perfectly competitive market?

• Many sellers

• Few sellers

• Barrier to entry

• product differentiation

What characterizes monopolistic competition?

• Many sellers and differentiated products

• Few sellers and homogeneous products

• Many sellers and homogeneous products

• Few sellers and differentiated products

What is a characteristic of a monopoly market structure?

• Many sellers

• Single seller

• few seller

• perfect competition

What is a key characteristic of barriers to entry in a monopoly?

• Low startup costs

• Easy access to resources

• High entry barriers

• Identical products

What is the shape of the demand curve facing a firm in monopolistic competition in the short run?

• Downward-sloping

• Upward-sloping

• Horizontal

• Vertical

In monopolistic competition, firms have a degree of market power, which means they can:

• Control the market price

• Influence market demand

• Set barriers to entry

• Collaborate with other firms

What is a key assumption of perfect competition?

• Product differentiation

• Barriers to entry

• Homogeneous products

• Monopoly power

What is the shape of the marginal revenue curve for a perfectly competitive firm?

• Upward-sloping

• Downward-sloping

• Vertical

• Horizontal

In perfect competition, each firm is a:

• Price-Taker

• Price-maker

• Price negotiator

• Price influencer

In a perfectly competitive market, what happens if a firm charges a price higher than the market equilibrium?

• It increases profit

• It experiences no change in profit

• It decreases profit

• It goes out of business