Market Structure Quiz

In perfect competition, how many firms produce identical products?

• One firm

• Many firms

• Few firms

• No firm

What is the term used for a firm in perfect competition that must accept the prevailing market price as given?

• Price maker

• Price taker

• Price setter

• Price influencer

What is the condition for a market to be considered a monopoly?

• Many firms producing identical products

• Firms can enter and leave the market freely

• One firm producing all of the output

• Many buyers and sellers available

What is the term for the legal, technological, or market forces that discourage or prevent potential competitors from entering a market?

• Technological hurdles

• Legal restrictions

• Barriers to entry

• Market forces

What type of monopoly occurs when a company has control of a scarce physical resource?

• Intellectual monopoly

• Patent monopoly

• Legal monopoly

• Natural monopoly

What is the term for a situation in which one firm produces all of the output in a market?

• Oligopoly

• Monopolistic competition

• Perfect competition

• Monopoly

In which market structure do many firms compete against each other, selling products that are distinctive in some way?

• Monopolistic competition

• Oligopoly

• Perfect competition

• Monopoly

What is the term for a branch of mathematics that economists use to analyze situations in which players must make decisions and then receive payoffs based on what decisions the other players make?

• Monopoly theory

• Collusion theory

• Game theory

• Oligopoly theory

What is the term for the level of output where the marginal cost curve intersects the average cost curve at the minimum point of average cost?

• Break-even point

• Shutdown point

• Collusion point

• Marginal profit point

What is the term for any action that firms do to make consumers think their products are different from their competitors'?

• Trade secrets

• Product differentiation

• Copyright

• Predatory pricing