Market Structures: A Comparative Analysis

Which of the following is a characteristic of perfect competition?

• Few sellers

• Homogeneous products

• High barriers to entry

• Price makers

In a monopoly, how is pricing power typically characterised?

• No control over prices

• Significant control over prices

• Prices determined by market forces

• Prices set by government regulation

Which of the following is an example of monopolistic competition?

• Wheat farming

• Local restaurants

• Electricity supply

• Airline industry

How do firms in an oligopoly typically behave in terms of pricing?

• They act independently without regard to competitors

• They engage in price wars frequently

• They often collude to set prices

• They have no influence over market prices

In a monopoly, how is consumer choice typically affected?

• Consumers have a wide variety of choices

• Consumers have limited choices

• Consumers can easily switch to substitutes

• Consumers face competitive prices

What is a common form of price discrimination in oligopolies?

• Charging the same price to all consumers

• Offering discounts based on purchase volume

• Setting a single price for all markets

• Ignoring consumer segments

Which of the following best describes the products in a perfectly competitive market?

• Differentiated

• Unique

• Homogeneous

• Customised

What is a key barrier to entry in a monopoly?

• Low start-up costs

• High competition

• Exclusive control over a resource

• Easy access to technology

Which of the following industries is most likely to be an oligopoly?

• Hairdressing

• Telecommunications

• Fruit and vegetable markets

• Handicrafts

In monopolistic competition, how do firms differentiate their products?

• By lowering prices significantly

• Through advertising and branding

• By producing identical goods

• By reducing production costs