Market Structures

What is a market structure?

• A market structure is the organizational and other characteristics of a market that determine the behavior of firms within it and the outcomes that result from interactions among firms and consumers.

• A market structure is a physical building where goods are bought and sold.

• A market structure is a type of fruit found in tropical regions.

• A market structure is a mathematical equation used to calculate supply and demand.

Name the four main types of market structures.

• monopsony

• perfect competition, monopolistic competition, oligopoly, monopoly

• duopoly

• cartel

Which market structure has a large number of firms selling similar but not identical products?

• Oligopoly

• Perfect competition

• Monopolistic competition

• Monopoly

In which market structure do firms have no control over the price of the product?

• Monopoly market

• Perfectly competitive market

• Oligopoly market

• Monopolistic competition

What is a monopoly?

• A monopoly is a situation in which a single company or group owns all or nearly all of the market for a particular type of product or service.

• A monopoly is a term used to describe a situation where multiple companies compete in a market.

• A monopoly is a type of government system where power is concentrated in the hands of one individual.

• A monopoly is a board game where players buy and trade properties.

What is a characteristic of an oligopoly market structure?

• Small number of large firms dominating the market

• Unlimited number of firms in the market

• Homogeneous products offered by all firms

• Perfect competition among firms

How do monopolistic competition and perfect competition differ?

• Perfect competition involves product differentiation and some market power.

• Monopolistic competition involves identical products and no market power.

• Monopolistic competition involves no product differentiation and no market power.

• Monopolistic competition involves product differentiation and some market power, while perfect competition involves identical products and no market power.

What is a barrier to entry in a market?

• A barrier to entry in a market is a myth created by existing companies

• A barrier to entry in a market is an obstacle that prevents new companies from easily entering and competing in the market.

• A barrier to entry in a market is a strategy to encourage competition

• A barrier to entry in a market is a welcome sign for new companies

Explain the concept of price discrimination in the context of market structures.

• Price discrimination is only observed in perfectly competitive markets.

• Price discrimination involves setting a fixed price for all customers regardless of factors like location or quantity purchased.

• Price discrimination is illegal in all market structures.

• Price discrimination refers to charging different prices to different customers for the same product or service based on various factors such as willingness to pay, location, or quantity purchased. It is commonly observed in monopolistic and oligopolistic market structures.

What role does government regulation play in market structures?

• Government regulation has no impact on market structures.

• Government regulation helps maintain a level playing field, promote efficiency, and safeguard public interest in various market structures.

• Government regulation increases competition in market structures.

• Government regulation leads to monopolies in market structures.