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WorksheetsReview of Market Structures
Total questions: 15
Worksheet time: 16mins
Reorder the following markets to show sellers' market power from GREATEST to LEAST.
Monopoly
Oligopoly
Monopolistic Competition
Pure Competition
Reorder the following markets to show barriers to entry from LEAST to GREATEST.
Pure Competiton
Monopolistic Competition
Oligopoly
Monopoly
Label the continuum of market structures.
"obstacles or hindrances that make it difficult for new companies to enter a given market...may include technology challenges, government regulations, patents, start-up costs, or education and licensing requirements."
Which characteristic of a market is the quote describing?
price control
barriers to entry
amount of competition
number of sellers
Select TWO benefits of competition in a market.
higher prices
inferior products & services
innovative products & services
lower prices
True or False: The US government has no laws against unfair competition in the market.
True
False
Which type of market structure is being described in the following quote?
"To make matters worse, health care consolidation has led to the absence of any choice at all for consumers. Another study by Harvard University on hospital markets found that between 2007-2017, 11.2 million Americans were served by just a single hospital system."
Sole Proprietorship
Monopolistic Competition
Monopoly
Oligopoly
The State of California filed suit against three pharmaceutical companies, Eli Lilly, Novo Nordisk, and Sanofi, which supply 90% of global insulin. Which market structure does this most closely resemble?
Perfect Competition
Monopolistic Competition
Monopoly
Oligopoly
Which of the following is the reason firms have little price control in a perfectly competitive market?
High barriers make it difficult for firms to enter the market.
Supplied products are exactly the same, so buyers purchase where the price is lowest.
Low barriers reduce profit motive, so there are fewer sellers.
Match the following definition or image to the correct term.
Firms can dictate the price it charges for its goods because there are no substitutes.
price takers
price makers
Firms cannot influence the market price of their products.
low barriers
high barriers
Competition is (a) for consumers because it leads to (b) prices and (c) choices for them. In addition, competition also results in (d) quality products. This is not the case with a (e) , where one seller controls the market.
Match each graphic to its market structure.
I can't draw this one!
Perfect Competition
Oligopoly
monopoly
Monopolistic Competition
Sarah Grace decides to open a boutique. She is surprised at how easy she was able to get started. In a few days, she is open for business and selling a lot of her inventory, even though there are five other successful boutiques in town. Based on this scenario, which of the following is probably NOT true?
Since she faced few barriers to entry, the market is probably not perfectly competitive.
Since there are other sellers who are able to make a profit, it's probably not a monopoly.
Since all the stores are not selling the exact same products, it is probably not pure competition.
Since the boutique has competition, it probably has good customer service.
If there is a (a) number of rivals in a market, we can conclude that there must be (b) barriers to entry. As a result, sellers must keep costs (c) since they cannot increase the (d) for which they can sell their products. This is typical of a (e) market.
Match statements below to the market to which it most closely relates.
(Must be placed in alphabetical order.)
