Market Structures

What is the driving question for studying market structures?

• How many products are available in the market?

• What is the level of competition between participants in the market?

• How many buyers are there in the market?

• What is the total revenue of the market?

In which market structure do firms have the most economic freedom and power according to buyers?

• Oligopoly

• Monopolistic Competition

• Monopoly

• Perfect Competition

What is the main incentive for any firms to produce anything?

• Minimize production when prices are low

• Maximize production when prices are high

• Minimize production when prices are high

• Maximize production when prices are low

Which market structure is characterized by many sellers producing many identical products with easy market access?

• Monopoly

• Perfect Competition

• Monopolistic Competition

• Oligopoly

What type of costs are expenses paid which are not directly related to output decisions and do not change regardless of the firm's production level?

• Opportunity costs

• Production costs

• Fixed costs

• Variable costs

Which market structure is characterized by one single seller producing one product with no alternatives?

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic Competition

What is the term for expenses which change based on increasing or decreasing production output?

• Fixed costs

• Production costs

• Variable costs

• Opportunity costs

In which market structure do firms have the ability to outcompete one another based on the unique or special characteristics of their product?

• Monopolistic Competition

• Monopoly

• Oligopoly

• Perfect Competition

What is the term for expenses which change based on increasing or decreasing production output?

• Opportunity costs

• Production costs

• Variable costs

• Fixed costs

Which market structure is characterized by a few very large firms competing with each other for controlling most of the market?

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly