Market Types Quiz

What type of market is characterized by having a large number of businesses that offer a similar product with some slight differences?

• Pure monopolies

• Monopolistic competition

• Perfect competition

• Oligopolies

What type of market is characterized by a few large businesses dominating the market and often initiating strategies that force action from others?

• Monopolistic competition

• Oligopolies

• Pure monopolies

• Perfect competition

What is the characteristic of a pure monopoly market?

• Many sellers

• Identical goods

• Price cannot be controlled

• Only one producer/seller

What percentage of the market should the leading 4 businesses account for in order for a true Oligopoly to occur?

• 60-80%

• 40-60%

• 20-40%

• 80-100%

What is the characteristic of a perfect competition market?

• Similar, but slightly different products

• Price is controlled by businesses

• Only one producer/seller

• Large number of businesses

What happens to the shrimp market in Forest Gump after the hurricane?

• There are multiple buyers and sellers

• Forrest is the sole supplier of the product, controlling the entire market

• All the other boats exit the market

• Forrest easily enters the market by buying a boat

What is the competitive environment of the Australian coffee industry?

• Dominant player in the market

• High proportion of single-store independent coffee shops and major chains

• No differentiation strategies employed

• Low-quality coffee and poorly trained baristas

What is the characteristic of an oligopoly market?

• Price cannot be controlled

• Highly competitive and often hostile

• Many sellers

• Only one producer/seller

Is this statement TRUE or FALSE

Commonwealth Bank is an Oligopoly

• True

• False

is this statement TRUE or FALSE

The banking industry in Australia is an Oligopoly

• True

• False