Chapters 7 and 8 Review

Front

What is a market structure in which only a few large sellers dominate and have the ability to affect prices in an industry?

Back

Oligopoly

Front

What is a market structure characterized by a single producer in a market?

Back

Monopoly

Front

What is the distinguishing feature of a market structure with monopolistic competition?

Back

product differentiation

Front

Which condition is present in pure competition but missing in monopolistic competition? Options: marginal analysis, freedom of entry and exit, very large numbers of buyers and sellers

Back

identical products

Front

A public utility is considered an acceptable type of natural monopoly because it...

Back

avoids wasteful duplication of pipes and wires

Front

A situation that caused by too much or too little production,  an inefficient allocation of resources is called a....

Back

market failure.

Front

Products that are consumed collectively, but do not produce profit and are maintained by the government are known as...

Back

public goods.

Front

Which of the following would be an example of negative externalities: The decrease of pollution from more solar panels and electric cars, The emissions produced from a nearby coal power plant, A park being built across the street from your house, A new Krispy Kreme in Patterson that makes the town smell like fresh donuts?

Back

The emissions produced from a nearby coal power plant.

Front

All of the following can cause markets to fail, except... Not enough competition. Not enough information. Resources that cannot, or will not, move. Government breaking up a monopoly.

Back

Government breaking up a monopoly.

Front

How does the government ensure competition in the market?

Back

The government can break up monopolies and expand laws to prevent a single company from dominating a market.