Market Structures Review

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

Businesses can "Collude" or work together to set prices

• Oligopoly
• Monopoly
• Perfect Competition

Choose the best definition of an oligopoly.

• a market structure where a small number of firms control the market and set prices or output

• a market structure where a single seller or producer assumes a dominant position in an industry or a sector.

• a theoretical market structure where many buyers and sellers compete with identical products and perfect information.

• when many companies offer products that are similar but not exact substitutes.

Which of the following industries is an example of a monopoly?

• utilities/water

• department stores

• auto industry

• commercial airlines

Which is NOT a characteristic of perfect competition?

• difficult entry into the market
• many sellers
• identical product
• no control over price  

A type of monopoly that arises because a single firm can supply a good or service to an entire market at a lower cost than could two or more firms.

• Monopoly

• Natural Monopoly

• Price Discrimination

• Cartel

What are the laws called that outlaw monopolies?

• Anti-monopoly

• Anit-big business

• Anti-trust

Please check all that apply: Why are some monopolies illegal?

• Leads to higher prices

• Inferior quality

• Reduced supply

One of the requirements for a monopoly is that

• products are high priced

• there are several close substitutes for the product

• there is a unique product with no close substitutes

• the product cannot be produced by small firms

A barrier to entry is

• an economic term for economies of scale

• illegal in most markets

• anything that prevents new firms from entering the market

• a factor that increases competition