Market

Which of the following is NOT a characteristic of perfect competition?

• Many buyers and sellers

• Differentiated products

• Free entry and exit

• Price-taking behavior

In which market structure do firms have the most pricing power?

• Perfect competition

• Monopolistic competition

• Oligopoly

• • Monopoly

What is a key feature of monopolistic competition?

• A single seller

• Homogeneous products

• Product differentiation

• No barriers to entry

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

• Wheat farming

• Internet service providers

• Street food vendors

• Custom jewelry making

Collusion between firms is most likely to occur in which type of market structure?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly

In a monopoly, a firm can set any price it wants and still maximize profits.

• True

• False

Government regulations always reduce market efficiency.

• True

• False

A ______________ occurs when resources are not allocated efficiently, leading to negative consequences for society.

A monopolist can earn long-term economic profits because there are significant barriers to entry.

• True

• False

A perfectly competitive market structure has high barriers to entry.

• True

• False