Understanding Market Structures Quiz

Which of the following is a characteristic of a perfectly competitive market?

• Few sellers

• Homogeneous products

• High barriers to entry

• Price maker

In a monopoly, the firm is considered a:

• Price taker

• Price maker

• Price follower

• Price competitor

Which of the following best describes an oligopoly?

• Many firms with no control over price

• A single firm dominating the market

• A few firms with significant control over price

• Firms with differentiated products and free entry

In monopolistic competition, firms:

• Sell identical products

• Have no control over price

• Face high barriers to entry

• Sell differentiated products

Which of the following is NOT a characteristic of a monopoly?

• Single seller

• Unique product with no close substitutes

• Free entry and exit

• High barriers to entry

Which of the following is a common feature of oligopolistic markets?

• Price wars

• Perfect information

• No advertising

• Infinite number of firms

In monopolistic competition, firms achieve product differentiation through:

• Price fixing

• Collusion

• Advertising and branding

• Government regulation