Business Organizations and Market Structures Quiz

When a single firm controls the total production or sale of a product:

• Oligopoly

• Monopoly

• Perfect competition

• Monopolistic competition

This type of market structure exists when a few producers dominate the production of similar but differentiated products:

• Oligopoly

• Monopoly

• Perfect competition

• Monopolistic competition

The market structure with the most control over prices is:

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

What is a market?

• A. A place where buyers and sellers do business

• B. Retail stores

• C. Online retailers

• D. All of these are markets.

Which of the following market structures has the largest number of firms trying to sell their products?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

Each of the following is a condition necessary for the existence of perfect competition EXCEPT:

• the product must have many sellers and buyers available.

• the product being offered by one competing firm must be identical to those offered by other firms

• buyers must have easy access to information and prices available

• prohibitive barriers to entry in the industry must exist

The largest 3 or 4 firms in an industry produce 70% or more of the industry's total output, the industry is classified as:

• A. perfect competition

• B. Pure monopoly

• C. Monopolistic competition

• D. Oligopoly

Each of the following is a condition necessary for the existence of monopolistic competition EXCEPT:

• Fairly large number(25-75) buyers and sellers of the product must exist.

• Firms must offer identical products for sale.

• Buyers must be well informed about differentiated products.

• Firms must be able to enter or exit an industry with relative ease.

Unlimited liability means that ________

• A. Business debts do not have to be paid

• B. Business owners are responsible for all debts

• C. A and B

• D. None of these is correct

A general partnership is ____________

• The most common type of partnership

• A business organization where both partners are involved in the day to day operations

• Your personal savings could be at risk

• All of these describe a general partnership