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WorksheetsMarket Structure Economics
Total questions: 25
Worksheet time: 14mins
If several firms decide together to set the market price below their costs for the short term to drive competitors out of business, they are participating in
predatory pricing.
price discrimination.
differentiation.
economies of scale.
A market that is an oligopoly has
many buyers and sellers.
many firms selling slightly different products.
a few firms dominating the market.
one seller and many buyers.
One role of the federal government's Justice Department is to
encourage price fixing.
break up monopolies.
provide businesses with loans for start-up costs.
eliminate all barriers to entry.
A natural monopoly is a market that runs most efficiently when it has
few sellers and only one buyer.
many sellers and many buyers.
one large firm providing all output.
few government regulations.
Public water is an example of a(n)
oligopoly.
natural monopoly.
cartel.
trust.
Government is concerned with all of the following practices of oligopolies EXCEPT
price leadership.
low barriers to entry.
collusion.
cartels.
A patent, a license to operate a business, and a franchise
are given to anyone who applies for them.
are only available in a perfect competition market structure.
are ways that the government can create a monopoly.
encourage low prices.
Which is an example of a commodity?
sweater
house
milk
automobile
Public outrage with powerful trusts in the late 1800s led Congress to
pass anti-trust legislation.
outlaw all price discrimination.
deregulate many industries.
pass laws that allowed the supplier to set the market price.
A firm with a natural monopoly
is an example of perfect competition.
offers may different goods and services.
usually agrees to allow the government to control the price and service provided.
is usually very inefficient.
Economists usually call an industry an oligopoly if
the four largest firms produce at least 70–80 percent of the output.
only one product is available on the market.
the ten largest firms produce less than 50 percent of the output.
there is one firm that produces 100 percent of the output.
Offering products of different tastes and shapes is an example of
perfect competition.
oligopolistic competition.
the law of demand.
nonprice competition.
In many industries, deregulation has resulted in
safer products.
antitrust laws.
lower prices for consumers.
increased government control.
A market structure with many sellers and many buyers is
an oligopoly.
monopolistic.
perfect competition.
nonprice competition.
Compared to a market with perfect competition, a monopoly often has
lower prices and fewer goods.
higher prices and fewer goods.
lower prices and more goods.
higher prices and more goods.
Price discrimination may be found in any market structure except for
an oligopoly.
a natural monopoly.
perfect competition.
a cartel.
A market that is a monopoly has
many buyers and sellers.
many firms selling slightly different products.
three or four firms dominating the market.
one seller and many buyers.
An example of a barrier to entry is
high start-up costs.
low start-up costs.
perfect competition.
government deregulation.
An example of a market that meets all four conditions for perfect competition is
wheat.
jeans.
books.
bagels.
Government is concerned with all of the following practices of oligopolies EXCEPT
price leadership.
low barriers to entry.
collusion.
cartels.
Which of the following industries is NOT an example of an oligopoly?
bicycle repair
cola
air travel
breakfast cereals
Offering products of different tastes and shapes is an example of
perfect competition.
oligopolistic competition.
the law of demand.
nonprice competition.
A market that is a monopoly has
many buyers and sellers.
many firms selling slightly different products.
three or four firms dominating the market.
one seller and many buyers.
Economists usually call an industry an oligopoly if
the four largest firms produce at least 70–80 percent of the output.
only one product is available on the market.
the ten largest firms produce less than 50 percent of the output.
there is one firm that produces 100 percent of the output.
A patent, a license to operate a business, and a franchise
are given to anyone who applies for them.
are only available in a perfect competition market structure.
are ways that the government can create a monopoly.
encourage low prices.
