Market Structures Quiz

What is the main focus of Chapter 6?

• Market Demand

• Market Structures

• Market Competition

• Market Regulation

In a perfectly competitive market, what is the characteristic of the demand curve for firms?

• Upward Sloping

• Downward Sloping

• Horizontal

• Vertical

What is the main advantage of a monopoly market structure?

• Encourages Research and Development

• Economies of Scale

• Limited Consumer Choice

• Social Costs

What is a key characteristic of an oligopoly market structure?

• Price Takers

• Many Firms

• Perfect Competition

• No Barriers to Entry

In monopolistic competition, what is the main source of market power for firms?

• Barriers to Entry

• Product Differentiation

• Imperfect Information

• Perfect Knowledge

What is a disadvantage of monopolistic competition?

• Achieves Productive Efficiency

• Fair Distribution of Income

• Does Not Achieve Productive Efficiency

• Encourages Technological Research

What is the main characteristic of a perfectly competitive market?

• Few Firms

• Product Differentiation

• Price Makers

• High Barriers to Entry

What is a disadvantage of a monopoly market structure?

• Wide Choice

• Uneven Distribution of Income

• Research and Development

• Economies of Scale

What is a key feature of monopolistic competition?

• Market Power

• Allocative Efficiency

• Independent Decision Making

• Imperfect Information

What is the main advantage of an oligopoly market structure?

• Fair Distribution of Income

• Encourages Technological Expansion

• Wide Choice

• Economies of Scale