Market Structures Quiz

What is the defining feature of perfect competition?

• One producer

• Many producers with identical products

• Few producers

• High barriers to entry

Which market structure allows for brand loyalty among consumers?

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

In which market structure do a few firms dominate the market?

• Perfect Competition

• Oligopoly

• Monopolistic Competition

• Monopoly

What is a characteristic of a monopoly?

• Many producers

• Unique product

• Easy market entry

• Price takers

A partnership allows for:

• Unlimited liability for one person

• Shared profits and liabilities

• No conflicts between partners

• Complete control by one individual

Which of the following is an example of a perfectly competitive market?

• Soft drinks

• Cotton

• Cars

• Restaurants

What type of business organization has limited liability for its owners?

• Sole Proprietorship

• Partnership

• Corporation

• None of the above

An example of an oligopoly is:

• Local bakeries

• Cell phone service providers

• Independent bookstores

• Farmers' markets

What is a disadvantage of a sole proprietorship?

• Unlimited liability

• Easy to start

• Complete control

• Full profit retention

A franchise allows independent business owners to:

• Start a completely new brand

• Use a parent company's trademarks

• Avoid paying fees

• Operate without regulations