NEW
Font size
S
M
L
XL
WorksheetsCHP 4: MARKET STRUCTURE
Total questions: 20
Worksheet time: 37mins
Name
Class
Date
1.
In perfect competition, the product is differentiated
a)
True
b)
False
2.
In monopolistic competition there are many buyers and sellers
a)
True
b)
False
3.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
4.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
5.
Which type of market structures has many many producers(companies) that sell identical products and has no control over price?
a)
perfect competition
b)
monopolistic competition
c)
oligopoly
d)
monopoly
6.
Which scenario is an example of a monopoly?
a)
A local water company is the sole provider of water for a small town.
b)
A dry cleaner specializes in environmentally friendly cleaning methods.
c)
A farmer produces green beans for sale at a farmer's market.
d)
A small number of cereal companies produce most of the cereal on the market.
7.
This market structure has 3-4 firms who dominate 70-80% of the industry.
a)
Monopoly
b)
Monopolistic Competitio
c)
Perfect Competitio
d)
Oligopoly
8.
List the four market structures in order from least competitive to most competitive.
a)
Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
b)
Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
c)
Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
d)
Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly
9.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
10.
How many firms are there in a monopoly?
a)
1
b)
2-5
c)
Many
11.
What prevents firms from entering a monopoly?
a)
Barriers to Entry
b)
Technology
c)
Price
d)
Barriers to Travel
12.
An industry that is dominated by a few large firms is
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
13.
A market structure characterized by firms producing similar product with easy entry into the market
a)
Perfect Competition
b)
Monopolistic Competition
c)
Monopoly
14.
Which is NOT a characteristic of a monopoly?
a)
Seller sets the market price
b)
Entry into the market is easy
c)
Firm sells a unique product
d)
One seller
15.
Perfect competition involves:
a)
Sellers working together to set prices
b)
A large number of buyers & sellers
c)
Difficulty entering & exiting the market
d)
Little information is available to buyers
16.
The market for milk is an example of perfect competition. Why?
a)
Sellers offer a nearly identical product
b)
Anyone can start a dairy farm or leave the dairy business at any time
c)
Many people buy and sell milk
d)
All of the above
17.
The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise and lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia?
a)
Perfect competition
b)
Monopolistic competition
c)
Oligopoly
d)
Monopoly
18.
A new firm recently arrived in Utopia offering much higher internet speeds than existing providers. The other providers have gone out of business because so many Utopian residents have switched to the new provider. What will most likely happen to the price of internet service in Utopia?
a)
The price will decrease because the new provider wants to keep its customers happy.
b)
The price will increase because there is only one internet provider in Utopia.
c)
The price will decrease because there is only internet provider in Utopia.
d)
There will be no change in price.
19.
Which of the following statements is true?
a)
Monopolistic competitors have an incentive to differentiate their products so customers have choices, but monopolies do not have this incentive.
b)
Monopolistic competitors & monopolies have the same amount of influence over the price of their products.
c)
Both oligopolies & industries with monopolistic competition involve a large number of sellers.
d)
All industries fit neatly into one type of market structure.
20.
In the 1990s, PLDT controlled 80% of the phone industry and was the ONLY provider of long distance phone service. This is an example of
a)
Monopoly
b)
Monopolistic Competition
c)
Perfect Competition
d)
Oligopoly
Reset
