Market Structures & Competition

Which market structure is characterized by many competitors?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Which of the following is NOT a condition for pure competition?

• Many buyers and sellers

• Sellers offer identical products

• Buyers and sellers are poorly informed

• Sellers can enter and exit the market easily

What can barriers to entry lead to in a market?

• Perfect competition

• Imperfect competition

• Monopoly

• Oligopoly

What is one characteristic of purely competitive markets?

• They are inefficient.

• They are monopolistic.

• They are efficient.

• They have high production costs.

Which of the following is an example of economies of scale?

• A small bakery

• A local grocery store

• A hydroelectric plant

• A neighborhood coffee shop

What does the phrase "bigger is better" refer to in the context of economies of scale?

• Larger companies have higher costs

• Larger companies have lower costs

• Smaller companies have lower costs

• Smaller companies have higher costs

What is the main characteristic of a monopoly related to economies of scale?

• Decreasing average costs with increased output

• Increasing average costs with increased output

• Constant average costs regardless of output

• Fluctuating average costs with increased output

What is a government monopoly?

• A monopoly created by private companies

• A monopoly created by the government

• A monopoly created by technological advancements

• A monopoly created by consumer demand

Offering a different price to different people is called?

• Price Manipulation

• Business Smart

• Fair Price Standard

• Price Discrimination

What is a characteristic of monopolistic competition?

• Identical products

• Few firms

• High barriers to entry

• Complete control over price