Market - Business- Labor Assessment

List the four market structures in the order from least to most competitive.

• Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

• Oligopoly, Monopolistic Competition, Perfect Competition, Monopoly

• Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition

• Monopolistic Competition, Perfect Competition, Monopoly, Oligopoly

When a major car company lowers its prices, other car makers will probably

• Lower their prices

• Raise their prices

• Keep their prices the same

• Go out of business

When a monopolistically competitive firm charges an excessive price for its product…

• Consumers will substitute a rival’s product

• Consumers will buy the product anyway

• Consumers will start their own business

• Businesses will change to perfect competition

How many firms are there in an oligopoly?

• Few

• Many

• One

• None

In monopolistic competition, producers:

• Have some ability to set prices

• Have no ability to set prices

• Have the government set prices

• Have consumer name their own price

The airline industry is an example of:

• Oligopoly

• Perfect Competition

• Monopoly

• Entrepreneurship

One of the requirements for a monopoly is that

• there is a unique product with no close substitutes

• There are no products to be sold

• Have a spokesperson with a monocle

• Invite other businesses to compete

What is an advantage of organizing a business as a corporation?

A key disadvantage for a sole proprietorship is...

• Unlimited liability

• Limited liability

• Sharing profits with stockholders

• Having tax breaks

What type of market structure has differentiated yet similar products and a very high level of competition?

• Monopolistic Competition

• Monopoly

• Pure competition

• Labor Force