Market Structures and Business Organization

Which best describes substitute goods in a monopoly?

• Substitutes are scarce, so prices are higher.
• There are no substitutes available.
• High availability of substitutes create competition.
• Substitute goods are typically inferior.

Natural monopolies occur when:

• one producer controls the price and production of all resources.
• a company is only using natural resources in the production of a good.
• a company creates products unique to the market.
• only one producer is needed to meet the demand in the market.

Which best describes how the government regulates technological monopolies?

• By creating the technology itself.
• By prohibiting competition from entering the market.
• By issuing a patent for the technology.
• By collecting an additional tax from those with a technological monopoly.

The United States Postal Service has exclusive rights to deliver private letters and other mail. This is an example of a ______________________.

• natural monopoly
• technological monopoly
• geographical monopoly
• government monopoly

Which of the following market structures consists of "price takers" due to suppliers inability to differentiate identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

A market structure in which a few large sellers control most of the production is a/an ____________________.

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Which of the following market structures features prices that are mostly determined by supply and demand at an equilibrium fair to both the consumers and producers?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Which of the following market structures has the MOST product differentiation?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Due to the relatively small market of consumers in Pine Mountain, Moss and Sons Feed and Seed has a ______________________ monopoly on farm supplies.

• Natural Monopoly
• Geographical Monopoly
• Technological Monopoly
• Government Monopoly

Which of the following business organizations takes on the most liability?

• Sole Proprietorship
• Cooperative
• Corporation
• Conglomerate