Market Structures Quiz

Ethan and Mia are selling apples at a local market. They both sell identical apples with no difference in quality or price. Which market structure does this scenario represent?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Which market structure did AT&T fall under when they were the only company providing long distance telephone service?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Which market structure do automobiles, cell phones, cable TV, and internet providers belong to?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Perfect competition is characterized by...

• A single producer making all of a certain good.

• Sellers acting together to set prices.

• Diverse products.

• A large number of sellers.

Aiden has developed a unique software algorithm that no one else can replicate. This gives him exclusive control over the market for this type of software. What type of monopoly does Aiden have?

• Technological Monopoly

• Government Monopoly

• Natural Monopoly

• Geographic Monopoly

In a small town, Charlotte owns the only bakery due to its unique location. This market structure is a...

• Technological Monopoly

• Government Monopoly

• Natural Monopoly

• Geographic Monopoly

Which scenario is an example of a monopoly?

• A) A small number of cereal companies produce most of the cereal on the market

• B) A dry cleaner specializes in environmentally friendly cleaning methods

• C) A farmer produces green beans for sale at a farmer's market

• D) A local water company is the sole provider of water for a small town

Which is NOT a barrier to entry?

• A) Production is large scale and requires many large factories

• B) No patents or licensing requirements.

• C) Strong customer loyalty to long established brands.

• D) High start-up costs for new businesses.

This market structure has 3-4 firms dominating 70-80% of the industry.

• A) Monopolistic Competition

• B) Perfect Competition

• C) Oligopoly

• D) Monopoly

List the four market structures from LEAST to MOST competitive.

• A) Monopoly, Oligopoly, Perfect Competition, Monopolistic Competition

• B) Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

• C) Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition

• D) Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition