Market Structures

Using the pizza store graphic, what market structure best fits the pizza industry?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which is NOT a characteristic of perfect competition?

• Numerous buyers and sellers
• Standardized product
• Differentiated product
• Independent buyers and sellers

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

Which is NOT a characteristic of perfect competition?

• difficult entry into the market
• many sellers
• identical product
• no control over price  

The price charged by a perfectly competitive firm is

• higher the more the firm produces.

• lower the more the firm produces.

• the same as the market price.

• different than the price charged by competing firms.

• indeterminate.

An example of imperfect competition is when

• A book seller freely exits the market
• A farmer sells eggs, fruits, and vegetables
• Buyers receive enough information to make educated buying choices
• Ice cream sellers join together to influence the price of ice cream sundaes

In which market structure is there the MOST competition?

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

Using advertising to try to convince customers to buy one product over another is a form of

• Antitrust competition
• Focus competition
• Monopolistic competition
• Non-price competition

In a monopoly which of the following is not true?

• Products are differentiated

• There is freedom of entry and exit into the industry in the long run

• The firm is a price maker

• There is one main seller

If Mark wants to sell his corn at a local farmer's market, he must be aware that the product is standardized and that he will have no control over the price. The market structure he is MOST likely participating in is

• monopolistic competition
• oligopoly
• perfect competition
• monopoly