monopolistic competition

What is a market?

• A place where only buyers meet

• A place where only sellers meet

• A place where government sets the prices

• A place where buyers and sellers meet to make exchanges

What characterizes a free market?

• Only one seller controls the market

• The government does not intervene in day-to-day economic activities

• The government intervenes in day-to-day economic activities

• There are no buyers in the market

Which market structure usually offers the best bargains for consumers?

• Monopolistic competition

• Monopoly

• Perfectly competitive market

• Oligopoly

What is a monopoly?

• A market with perfect information

• A market with only one seller

• A market where it's easy for new businesses to enter

• A market with many sellers

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

• Perfectly competitive market

• Oligopoly

• Monopoly

• Monopolistic competition

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

• The perfect information available

• The large number of small businesses

• The identical products sold

• The high degree of initial capital investment required

What is NOT a characteristic of a perfectly competitive market?

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

• Everyone has all the information needed to make informed decisions

• Businesses have to compete on price

• A large number of small businesses

Which market structure is typical in the United States?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfectly competitive market

What can a business in a monopoly market do because of its position?

• Charge as low a price as possible

• Compete on different characteristics of their products

• Determine the supply and pricing of its goods and services

• Easily allow new businesses to enter the market

Which of the following is an example of an oligopoly?

• The oil industry

• The online retail industry

• The grocery store industry

• The local farmers market