Market Structures and Characteristics

What is a key characteristic of a perfectly competitive market?

• A single firm controls the entire market.

• Products are highly differentiated.

• There are many firms offering identical products.

• A few large firms dominate the market.

In which market structure does a single firm have complete control over supply and pricing, with no close substitutes for its product?

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

What defines an oligopoly market structure?

• Numerous small firms selling identical products.

• A single seller with no competition.

• A few dominant firms whose decisions are interdependent.

• Many firms offering differentiated but substitutable products.

Which market structure is characterized by many firms offering products that are similar but differentiated through branding, features, or niche markets?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

The early days of the streaming industry, with platforms offering content at minimal or no cost and little differentiation, most closely resembled which market structure?

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Which of the following is a key characteristic of a monopoly?

• Many sellers

• Easy entry for new firms

• Price taker

• Single seller

Why was Netflix initially able to act like a monopolist in the streaming market?

• It had many competitors offering similar content

• It focused on acquiring content from other studios

• It offered exclusive original programming that was unavailable elsewhere

• It had low barriers to entry for new users

What defines an oligopoly market structure?

• A single firm controls the entire market

• Many small firms offer identical products

• A small number of firms dominate the market

• Firms have no influence over market prices

What is the primary implication of interdependence among firms in an oligopoly?

• Firms can ignore competitors' actions

• It leads to perfect competition

• Companies must consider competitors' actions when making decisions

• It results in a lack of product differentiation

The streaming industry is transitioning from an oligopoly to what type of market structure?

• Perfect competition

• Monopoly

• Monopolistic competition

• Duopoly