A product in the market refers to:

• A commodity only

• Goods or services sold in the market

• Only services sold in the market

• None of the above

Which of the following is NOT an essential of a market?

• Willing buyers and sellers

• Commodities to be bought or sold

• Fixed government taxes

• A market price

A perfect competition market is characterized by:

• Only one seller

• No freedom of entry or exit

• Many buyers and sellers

• Price discrimination

In a perfect competition market, the products are:

• Differentiated

• Identical

• Substitutes

• Rare

What is a major feature of a monopoly market?

• Many buyers and many sellers

• No freedom of entry

• Freedom of entry

• Perfect mobility of factors of production

Price discrimination in a monopoly occurs when:

• The seller charges the same price in all markets

• Different prices are charged for the same product in different markets

• The government sets all the prices

• Buyers control the price

Which of the following is NOT a source of monopoly power?

• Control of an important input in production

• Existence of internal economies of scale

• Freedom of entry into the market

• High costs of entering the market

The term oligopoly refers to a market:

• With many small firms

• With few large firms

• With only one firm

• With perfect knowledge of the market

In a monopolistic competition market:

• Products are differentiated

• There is only one seller

• Products are identical

• Price discrimination is impossible

What kind of market is described by having many buyers and sellers dealing with a similar but differentiated product?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition