Market Structures Quiz

Which of the following is a characteristic of perfect competition?

• High barriers to entry

• Unique products

• Few producers

• Product similarity

What determines the price of goods in a perfect competition market?

• Government regulations

• Producer preferences

• Supply and demand

• Consumer choices

What is a secret agreement of a group of businesses to control prices?

• Limited access to data

• Collusion

• Competition

• Differentiation

What is the opposite of perfect competition?

• Oligopoly

• Monopoly

• Duopoly

• Free market

Commodities like corn and wheat operate under which market structure?

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

What action did Congress take against monopolies?

• Supported their growth.

• Passed antitrust laws.

• Provided subsidies.

• Encouraged mergers.

When a company produces a product that has heavy competition that lacks uniqueness and uses pricing based on target costing, it is called a:

• Economies of Scale

• Collusion

• Price taker

• Price maker

When a company produces a product with minimal competition that offers uniqueness and uses pricing based on cost-plus pricing, it is called a:

• Antitrust laws

• Collusion

• Price taker

• Price maker

What is a government-created monopoly?

• A monopoly formed by a single producer

• A monopoly established by government authority

• A monopoly that occurs naturally

• A monopoly that is illegal

What is a license in the context of monopolies?

• A type of monopoly that controls all market prices

• A legitimate authorization to run a company or enter a market

• A method to eliminate competition entirely

• A strategy to increase consumer prices