Market Structures Review

In a perfectly competitive market, there would be

• many barriers to entry.

• guaranteed profitability.

• numerous buyers and sellers.

• limited product choices.

What characteristic is most common in a perfectly competitive market?

• Single seller dominance.

• Products with no close substitutes.

• The same or similar products.

• High entry and exit barriers.

Natural monopolies are businesses that

• deal with natural resources.

• are unregulated.

• provide such things as utilities, public transportation, and cable TV.

• exclusively sell products online.

What are natural monopolies?

• Businesses that deal with natural resources.

• Businesses that are unregulated.

• Businesses that provide such things as utilities, public transportation, and cable TV.

• Businesses that exclusively sell products online.

What is the main purpose of advertising in monopolistic competition?

• building brand loyalty

• showing how similar a product is to its competitors

• informing consumers that there are no other choices

• decreasing product visibility

Why do companies in monopolistic competition invest heavily in marketing?

• to differentiate their product from competitors

• to lower the prices of their products

• to indicate that their product is identical to others on the market

• to eliminate the need for consumer choice

Describe a monopoly

• A monopoly is a market structure where a single seller or producer controls the entire supply of a particular product or service.
• A monopoly is a type of dessert made with chocolate and caramel
• A monopoly is a type of government system
• A monopoly is a board game where players buy and trade properties

What letter on the graph represents the proper location for the market structure "Oligopoly"?

• W

• X

• Y

• Z

What letter on the graph represents the proper location for the market structure "Oligopoly"?

• W

• X

• Y

• Z

Which market structure is characterized by a few firms, differentiated products, and significant barriers to entry?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Pure monopoly