Market Structures Quiz

What is the primary characteristic of perfect competition?

• Few dominant firms

• Single seller

• Large number of sellers

• High barriers to entry

Which market structure is characterized by product differentiation?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

In which market structure do firms have no control over market price?

• Perfect Competition

• Oligopoly

• Monopoly

• Monopolistic Competition

What is a disadvantage of perfect competition?

• Product differentiation

• High prices for consumers

• Limited incentive for innovation

• High barriers to entry

Which of the following is an example of an oligopoly?

• Clothing stores

• Airline industry

• Utility companies

• Agricultural markets

What is a key feature of monopolistic competition?

• Product differentiation

• High barriers to entry

• Identical products

• Single seller

How do monopolies typically affect consumer prices?

• Lower prices

• Variable prices

• Higher prices

• Stable prices

What is a common outcome of monopolies on economic welfare?

• Lower prices

• Higher competition

• Reduced consumer surplus

• Increased consumer surplus

What is the role of antitrust laws?

• To promote monopolies

• To prevent monopolies

• To encourage collusion

• To regulate prices

Which market structure allows for some price control due to product differentiation?

• Monopoly

• Perfect Competition

• Monopolistic Competition

• Oligopoly