Monopoly Test

1. Which of these is NOT a characteristic of pure competition?

• Control over price by individual firms
• Monopolistic competition
• Oligopoly
• Perfect competition

Define patent.

• A patent is a type of fruit
• A patent is a type of legal document
• A patent is a type of currency
• A patent is a form of intellectual property that gives its owner the legal right to exclude others from making, using, selling, and importing an invention for a limited period of time, usually 20 years.

Which of the following is an example of monopolistic competition?

• Fast food restaurants
• Public transportation services
• Local farmers' markets
• Online streaming platforms

Who enforces antitrust laws?

• Government agencies like the FTC and DOJ
• Local municipalities
• Individual citizens
• Private companies

What is a commodity?

• A commodity is a rare item with no economic value.
• A commodity is a basic good used in commerce that is interchangeable with other goods of the same type.
• A commodity is a type of currency used in barter systems.
• A commodity is a service provided by a business.

Which of the following is an example of non-price competition?

• Cost-cutting measures
• Advertising
• Discounts
• Price matching

Which is NOT an example of targeted discounts?

• Offering a discount only to new customers
• Offering a discount based on purchase history
• Offering a discount to all customers
• Offering a discount to customers who spend over $100

1. Factors that make it difficult for new firms to enter a market

• Decreasing economies of scale
• Low barriers to entry
• High barriers to entry, established brand loyalty, economies of scale, legal restrictions, high initial investment costs
• No brand loyalty

1. Market structure that fails to meet the conditions of pure competition

• Perfect competition
• Monopoly
• Oligopoly
• Imperfect competition

1. A market that runs most efficiently when one large firm provides all of the input

• Oligopoly
• Monopsony
• Perfect Competition
• Monopoly