WorksheetsBusiness Economics - Market Structures
Total questions: 15
Worksheet time: 11mins
An industry that is dominated by a few large firms is
A competitive market
A monopoly
An oligopoly
The real or imagined differences between competing products in the same industry.
Price competition
Product differentiation
Marketing differential
Oligopoly
Which of the following is most likely an example of a monopoly?
A Starbucks across from Dunkin Donuts
A gas station in a town by itself
3 fast food restaurants all on the same street
A Sainsbury's 4 miles away from a Tesco's
Businesses conspiring among themselves to set the prices of competing products at a higher level
Price fixing
Trust
Market sharing
Oligopoly
The goal of a company in an oligopoly industry is to
Increase market share and profits.
Obtain the highest price possible.
Always follow rivals if they raise price.
Be the market leader in innovation.
The term used for costs that change with the number of output
Fixed Cost
Average Cost
Variable Cost
Marginal Cost
The cartel model of oligopoly leads to:
All the firms in the industry acting as one to set a monopoly price
Each producer acting independently of others
Firms following the low-price firm in the industry
Differences in cost of production discouraging individual firms from cheating
Public utilities are an example of?
A competitive market
Natural Monopoly
Monopolistic power
Oligopoly
Which type of market structure has many producers (companies) that sell very similar products and have almost no control over price?
Competitive markets
Oligopoly
Monopoly
A competitive market is characterized by
a large number of sellers and buyers.
diverse products.
sellers acting together to set prices.
uninformed buyers and sellers.
