quiz 2

1. Which the following is NOT characters of perfect competition

• Many buyers and sellers

• IIdentical Products

• Informed buyers and sellers

• DDifferentiate Product

In perfectly competitive market business can

• Set their own prices

• Control the supply of the product

• EEnter And exit the market freely

• Differentiate ther product

Which of the following is NOT condition for perfect competition?

• Many buyers and sellers

• Identical products

• IInformed Buyers and sellers

• Barriers to entry

What is a natural monopoly?

• A ) A market with unlimited

• B) A market with significant barriers to entry and high infrastructure costs

• C) market with significant anly government control

• D) a market where all companies are small

What advantage does the largest supplier in a natural monopoly have?

• A Higher prices than competitors

• B an overwhelming advantage over competitors

• C lower production costs than competitors

• D government subsidies

What is a patent?

• A government- imposed tax on innovation

• A ilicense giving exclusive rights to sell a product for a specific time

• A rule allowing free competition in a market

• A restriction on industrial production

What is industrial monopoly?

• A monopoly where the government allows certain industries to restrict competition

• A monopoly controlled entirely by private firms

• A monopoly with no barriers to entry

• A monopoly limited to natural

What defines monopolistic competition?

• Only one supplier controls the market

• Many products compete by selling differentiated products

• All products are identical

• Busers have no choice but from one supplier

How do producers differentiate their products in monopolistic competition?

• By selling identical products at the same price

• By branding or improving quality

• By reducing barriers to entry

• By eliminating competition