Recap - Forms of Market

Which of the following may create a barrier to entry?

• 1. two small firms merging in a large industry 

• 1. a government granting exclusive rights to a firm to run a rail franchise on a major route 

• 1. a firm cutting its price in a highly competitive market 

• 1. the setting up of a price comparison website

Which of the following is an example of perfect competition?

• 1. A single supplier of electricity in a region

• 1. A market with many small wheat farmers selling identical products

• 1. An exclusive luxury brand with limited distribution

• 1. A technology company with patented products

Which of the following is an example of oligopoly?

• 1. A local farmers' market with various produce vendors

• 1. A market dominated by a few large airlines offering similar services

• 1. An open-source software project with multiple contributors

• 1. A small boutique clothing store with unique designs

Which of the following would be a consequence of a perfectly competitive market being replaced by a monopoly?

• lower price and higher output

• higher price and restricted output

• lower profit

• lower barriers to entry

What is a characteristic of monopolistic competition?

• 1. Many firms selling differentiated products

• 1. One firm dominating the market with unique products

• 1. Only one firm selling identical products

• 1. Government control over pricing and output

What is a key feature of a monopoly market structure?

• 1. Many firms competing with identical products

• 1. One firm as the sole seller with no close substitutes

• 1. Multiple firms collaborating to set prices

• 1. Government intervention to prevent market dominance

What is a consequence of a market with perfect competition?

• Higher prices and limited output

• Lower prices and increased output

• Higher barriers to entry for new firms

• Lower consumer choice and variety

What is a characteristic of an oligopoly market structure?

• 1. Many firms selling identical products

• 1. One firm dominating the market with unique products

• 1. Government control over pricing and output

• 1. A market with no competition