Features of market structures

In a market structure with perfect competition, there are _________ barriers to entry.

• no

• many

• some

• significant

A monopoly has _________ seller(s) dominating the market.

• one

• two

• three

• four

In monopolistic competition, products are _________ but not identical.

• similar

• identical

• completely different

• unrelated

Which market structure has the highest level of competition?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

What is a key feature of an oligopoly?

• Single seller

• Many small firms

• Few large firms

• Identical products

In which market structure do firms have significant pricing power?

• Monopolistic Competition

• Perfect Competition

• Oligopoly

• Monopoly

Which market structure is characterised by differentiated products?

• Perfect Competition

• Monopoly

• Oligopoly

• Monopolistic Competition

What is a natural barrier to entry in a monopoly?

• High start-up costs

• Government regulations

• Control of a key resource

• All of the above

Compare and contrast perfect competition and monopolistic competition in terms of the number of sellers, type of substitute products, and nature of competition.

• Perfect competition has many sellers, identical products, and price competition; monopolistic competition has many sellers, differentiated products, and non-price competition.

• Perfect competition has few sellers, identical products, and non-price competition; monopolistic competition has many sellers, identical products, and price competition.

• Perfect competition has many sellers, differentiated products, and non-price competition; monopolistic competition has few sellers, identical products, and price competition.

• Perfect competition has few sellers, differentiated products, and price competition; monopolistic competition has many sellers, identical products, and non-price competition.

Discuss the impact of product differentiation on market structures and provide examples of industries that fit into each market structure.

• Product differentiation leads to monopolistic competition; examples include the fast food industry.

• Product differentiation results in perfect competition; examples include the agriculture industry.

• Product differentiation creates a monopoly; examples include the utility industry.

• Product differentiation has no impact on market structures.