Market Structure Quiz

What does market structure refer to?

• The financial performance of companies

• The geographical location of companies

• The number of products in a market

• Classification of industries based on competition

Which of the following is NOT a factor that determines market structure?

• Quality of customer service

• Ability to negotiate

• Ease of entering the market

• Number of buyers and sellers

How many popular types of market structures are mentioned?

• Six

• Four

• Five

• Three

In perfect competition, what type of products do companies sell?

• Unique products

• Luxury products

• Homogeneous products

• Differentiated products

What is a characteristic of monopolistic competition?

• Identical products

• Single seller in the market

• No barriers to entry

• Product differentiation

What is a key feature of an oligopoly market?

• Many small companies

• A single dominant company

• Few large companies

• No product differentiation

What happens in a monopoly market?

• One company controls the market

• Multiple companies compete

• Prices are set by consumer demand

• Products are highly differentiated

What is a common criticism of perfect competition?

• Limited consumer knowledge

• High barriers to entry

• Incentives for innovation

• Fixed profit margins

In an oligopoly, what is a potential outcome of companies colluding?

• Supernormal profits

• More product differentiation

• Lower prices for consumers

• Increased competition

What is a defining characteristic of a monopoly?

• Product differentiation

• Many competitors

• Free entry and exit

• Sole seller in the market