Market Structure

A perfect competitive firm charges a price that is ____________.

• different to other firms

• higher than other firms

• lower than other firms

• similar to other firms

Which of the following describes a monopoly firm?

• Single seller

• Many sellers

• Many substitutes

• No barrier to entry

Which of the following is not the characteristics of Perfect Competition?

• Barriers of entry

• Homogenous product

• Firms are price taker

• Don't have non price competition

What type of advertising would we expect to see in perfectly competitive markets?

• Significant advertising by individual firms

• No advertising by individual firms but potential advertising by the industry as a whole

• No advertising by individual firms or by the industry as a whole

• Significant advertising by individual firms and by the industry as a whole

Perfectly competitive markets sell

• differentiated products

• homogenous products

• a variety of both types of products

Which of the following is not a barrier to entry in a monopolized market?

• The presence of many buyers and sellers in the market

• The government gives a single firm the exclusive right to produce some good.

• The costs of production make a single producer more efficient than a large number of producers.

• A key resource is owned by a single firm.

Which of the following best describes an oligopoly?

• many monopolistically competitive firms

• a few firms sharing monopoly power

• a former monopoly that has been broken up by the government

• a government-granted franchise or monopoly

Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? 

• In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition. 
• In perfect competition there are many firms, but in monopolistic competition there are only a few firms. 
• In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product. 
• In perfect competition there are few consumers, but in monopolistic competition there are many consumers. 

The market for agricultural produce is an example of:

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

Coke and Pepsi are the main producers and control the soda market. This is an example of:

• Oligopoly

• Monopoly

• Monopolistic Competition

• Perfect Competition