Level 8 Review Market Structure and the Free Enterprise System

In a Perfect Competition, products are basically..

• differentiated

• similar

• identical

• opposite

In a Perfect Competition, the biggest factor in setting price levels is..

• supply/demand

• celebrity endorsements

• the stock market

• price of substitute products

In a market that is in Perfect Competition, you would normally find ___

• high taxes and fees making it too expensive to enter

• government regulations restricting new producers

• 
  difficulty in entering the market

• few barriers to entry- easy to enter/exit the market

The main characteristics of a Monopolistic Competition include..

• producers differentiate their products to show superiority

• strict gov't regulations

• buyers not well-informed on products

• high barriers to entry

An Oligopoly is when there are

• an open market with plenty of producers

• few producers who control the market

• 
  only one producer

• a market that hasn't yet been discovered

In an oligopoly, when a few producers join forces publicly to control pricing and production levels (btw: it's illegal in the US)

• FEDERATION

• COLLUSION

• 
  CARTEL

• 
  TRUST

The market for agricultural produce is an example of:

• oligopoly

• perfect competition

• monopoly

• monopolistic competition

Coke and Pepsi are the main producers and control the soda market. This is an example of:

• Oligopoly

• Monopolistic Competition

• Monopoly

• Perfect Competition

When buying produce at the grocery store, many people shop around for the best deal, because when it comes down to it, an apple is an apple. This is an example of:

• monopolistic competition

• perfect competition

• 
  oligopoly

• monopoly

Buyers have few choices when it comes down to satellite TV and internet providers. Basically, the producers are pretty much the same. This is an example of

• oligopoly

• monopoly

• perfect competition

• monopolistic competition