E.21: Competition in a Market Structure

What defines a monopoly in the market?

• Many sellers and buyers

• Products are identical

• Only one seller controlling the entire market

• A small number of firms dominate the market

Which of the following is an example of an oligopoly?

• Restaurants

• Agricultural markets

• Automobile industry

• Local utilities

What is a characteristic feature of monopolistic competition?

• High barriers to entry

• Interdependence among firms

• Product differentiation

• Homogeneous products

In which market structure do firms have some control over the price?

• Perfect competition

• Monopolistic competition

• Monopoly

• Oligopoly

What is a key feature of perfect competition?

• Unique product

• Few sellers

• Many sellers and buyers

• Price maker

Which market structure is characterized by having a unique product with no close substitutes?

• Oligopoly

• Perfect competition

• Monopolistic competition

• Monopoly

What distinguishes oligopoly from monopolistic competition?

• A small number of firms dominate the market

• Homogeneous products

• Many sellers

• Freedom of entry and exit

Which of the following examples fits the description of monopolistic competition?

• Clothing stores

• Stock exchange

• Airline industry

• Patented drugs

What is a common characteristic of both monopoly and oligopoly market structures?

• Homogeneous products

• High barriers to entry

• Freedom of entry and exit

• Many sellers

Which market structure is best described by the presence of numerous buyers and sellers with free entry and exit?

• Perfect competition

• Oligopoly

• Monopolistic competition

• Monopoly