Exploring Market Structures and Competition

What term describes a market dominated by many businesses selling identical products?

• Monopoly

• Monopolistic competition

• Oligopoly

• Perfect competition

Why are prices typically low in a perfectly competitive market?

• Government regulations

• Many sellers with identical products

• Unique product offerings

• High barriers to entry

Which market structure is characterized by many sellers and informed buyers?

• Perfect competition

• Oligopoly

• Monopolistic competition

• Monopoly

What is a key characteristic of a monopoly?

• Easy market entry

• Single or dominant business controls the market

• Low consumer prices

• Many competitors

How does the government typically respond to monopolies?

• Supports their formation

• Imposes minimal regulations

• Uses antitrust laws to regulate or dismantle them

• Encourages global expansion

What distinguishes monopolistic competition from perfect competition?

• Only one seller

• Products are similar but not identical

• High barriers to entry

• Identical products

In which market structure do businesses have some control over their prices due to product differentiation?

• Monopoly

• Oligopoly

• Monopolistic competition

• Perfect competition

Which market structure features a few large firms dominating the market?

• Perfect competition

• Monopoly

• Monopolistic competition

• Oligopoly

What illegal agreement might firms in an oligopoly engage in?

• Public endorsements

• Price fixing

• Charitable donations

• Environmental commitments

What is a common effect of high barriers to entry in a market?

• More innovation

• Lower prices

• Decreased consumer choice

• Increased competition