Market Structures Review

Monopolies are considered harmful to consumers because

• they can charge high prices for their goods

• they pay their employees less than other businesses

• they move factories to other countries

• they use false advertising

Perfect competition is a market structure in which _______ businesses sell ______ products

• no, any

• some, similar

• many, the same

• few, many

In which market structure are products similar but differentiated (through branding, quality, etc.)?

• perfect competition

• monopolistic competition

• monopoly

• oligopoly

Which market structure provides the lowest prices for consumers?

• monopoly

• monopolistic competition

• oligopoly

• perfect competition

An oligopoly can be described as an industry in which

• one company produces most of the output

• 2 companies produce most of the output

• a handful of companies produce most of the output

• a large number of companies produce most of the output

Which of the following is NOT a problem cause by monopolies?

• low quality

• poor customer service

• fewer new products

• more competition

Three companies control almost 70% of the cereal market. This means the market structure of the cereal industry is:

• an oligopoly

• a monopoly

• monopolistic competition

• perfect competition

In which market structure does a business have total control over price?

• perfect competition

• oligopoly

• monopolistic competition

• monopoly

Theoretically, the fruit and vegetable industry would most likely be a part of which market structure?

Which market structure is best for consumers and why?