Economics Unit 3 Test SSEMI 3

Firms produce and sell identical products, have a relatively small market share, consumers are aware of the products and their prices, and there are few barriers to entry into the market.

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

An unincorporated business owned by a single person, which may or may not have employees, is an example of a(n)

• Partnership

• Corporation

• Entrepreneurship

• Sole proprietorship

Worldwide, Coca-Cola and PepsiCola dominate the soft-drink market, selling significantly more beverage products than any other producers. This domination by only two producers is BEST described as a(n)

• Monopoly

• Oligopoly

• Open market

• Pure competition

Which type of market typically produces the highest level of output at the lowest price to consumers?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which slogan MOST likely reflects a price competition strategy by the company using it?

• From Our Family to Yours!

• Get the Most For Your Money!

• The Highest Quality on Earth!

• Forget the Rest, Stick with the Best!

A utility (such as a power company) which controls all services in a designated area is called a

• Trust

• Cartel

• Natural monopoly

• Devised oligopoly

How might firms engage in price competition?

• Firms might advertise that they offer the lowest price on selected merchandise.

• Firms might promote the value their product offers for the price.

• Firms might join a coupon site to display their product’s price.

• Firms might offer free gifts to attract new customers

In cases of natural monopolies- such as utility companies- prices are kept under control MAINLY through

• Competition

• Supply and demand

• Free market forces

• Government regulation

Which markets compete in non-price competition?

• oligopoly and perfect competition

• monopoly and monopolistic competition

• monopolistic competition and oligopoly

• perfect competition and monopolistic competition

Which market(s) has no competition

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition