Types of Competition

What is a market?

• A place where only digital goods are sold

• A place where buyers and sellers meet to make exchanges

• An online platform for free software

• A private area where government conducts economic research

What characterizes a free market?

• Heavy government intervention in economic activities

• No government intervention in day-to-day economic activities

• Businesses are owned by the government

• Government sets all the prices

Which market structure offers the best bargains according to the text?

• Perfectly competitive market

• Oligopoly

• Monopoly

• Monopolistic competition

What is a monopoly?

• A market with many sellers and high competition

• A market with only digital products

• A market with only one seller

• A free market with no government intervention

What makes it difficult for new businesses to enter an oligopoly?

• No demand for new products

• High degree of initial capital investment

• Lack of technology

• Government restrictions

In which market structure do businesses sell similar but not identical products?

• Oligopoly

• Perfectly competitive market

• Monopolistic competition

• Monopoly

What is NOT a characteristic of a perfectly competitive market?

• Businesses have to compete on price

• All products have the same characteristics

• A large number of small businesses

• It's difficult for businesses to enter and leave the market

Why can businesses in a monopoly set high prices?

• Because they offer the best quality

• Because of government support

• Because of high competition

• Because there is no competition

What is true about monopolistic competition?

• Businesses sell identical products

• It's difficult for businesses to enter the market

• Businesses compete on price and product characteristics

• There is only one seller

Which of the following is an example of an oligopoly?

• Online blogging platforms

• Local farmers market

• The oil industry

• Independent bookstores