Worksheetsmarket power
Total questions: 14
Worksheet time: 8mins
What market type would hairdressers be?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
A firm is allocatively efficient when they produce at:
AR = MC
AR=AC
MR=MC
none of the above
How many firms do we assume to exist in a perfectly competitive market?
fairly many
infinitely many
just one
a few
Another name for "identical" products in a perfectly competitive market would be...
Homosexual
Homogenous
Homophobic
Homographic
Which industry would be the best example of a natural monopoly?
Car mechanics
Waste management
Streaming services
Agricultural goods
Can a monopoly make abnormal profits?
Only in the short run
Yes, both in the short run and the long run
Only in the long run
No, neither in the short run nor the long run
Firms in a perfectly competitive market are...
all price-takers
50/50 price-takers and price-makers
all price-makers
none of the above
Can a firm in monopolistic competition make abnormal profits?
Yes, but only in the short run
Yes, both in the short run and the long run
Yes, but only in the long run
No, neither in the short run nor the long run
How can a firm in monopoly increase their price?
By increasing output
By decreasing output
None of the above
Is a collusive oligopoly productively efficient?
Yes, but only in the short run
Yes, but only in the long run
Yes, both in the short run and the long run
No, neither in the short run nor the long run
How do firms in a collusive oligopoly compete?
By changing their prices
Using non-price competition
Both
None of the above
Why would the government intervene in the market where firms have a lot of market power (oligopoly, monopoly)?
Because the consumers have a lower choice
Because the prices might be unnaturally high
Because those markets tend to be inefficient
All of the above
In which market structure can firms collude or cooperate to set prices?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
Which of those is a characteristic of a monopoly?
Difficult to enter
Many sellers
Firms produce different items
No control over price
