WorksheetsMarket Structures
Total questions: 20
Worksheet time: 7mins
A perfect competitive firm charges a price that is ____________.
different to other firms
higher than other firms
lower than other firms
similar to other firms
Which of the following describes a monopoly firm?
Single seller
Many sellers
Many substitutes
No barrier to entry
If a monopoly firm practices price discrimination the firm will _____________.
earn smaller profit
produce lower quantity than before price discrimination
charge a higher price when demand is inelastic and a lower price when demand is elastic
charge a higher price when demand is elastic and a lower price when demand is inelastic
Which of the following is not the characteristics of Perfect Competition?
Barriers of entry
Homogenous product
Firms are price taker
Don't have non price competition
What type of advertising would we expect to see in perfectly competitive markets?
Significant advertising by individual firms
No advertising by individual firms but potential advertising by the industry as a whole
No advertising by individual firms or by the industry as a whole
Significant advertising by individual firms and by the industry as a whole
Perfectly competitive markets sell
differentiated products
homogenous products
a variety of both types of products
A perfect competitive firm charges a price that is ____________.
different to other firms
higher than other firms
lower than other firms
similar to other firms
Which of the following is not a barrier to entry in a monopolized market?
The presence of many buyers and sellers in the market
The government gives a single firm the exclusive right to produce some good.
The costs of production make a single producer more efficient than a large number of producers.
A key resource is owned by a single firm.
One of the requirements for a monopoly is that
products are high priced
there are several close substitutes for the product
there is a unique product with no close substitutes
the product cannot be produced by small firms
A barrier to entry is
an economic term for economies of scale
illegal in most markets
anything that prevents new firms from entering the market
a factor that increases competition
Which of the following is NOT a major barrier to entry for a monopolist?
control over a key input
patent protection
economies of scale
product differentiation
Monopolist can control
price
output
both
nothing
If a monopoly firm practices price discrimination the firm will _____________.
earn smaller profit
produce lower quantity than before price discrimination
charge a higher price when demand is inelastic and a lower price when demand is elastic
charge a higher price when demand is elastic and a lower price when demand is inelastic
Which of the following is not a barrier to entry in a monopolized market?
The presence of many buyers and sellers in the market
The government gives a single firm the exclusive right to produce some good.
The costs of production make a single producer more efficient than a large number of producers.
A key resource is owned by a single firm.
Which of the following best describes an oligopoly?
many monopolistically competitive firms
a few firms sharing monopoly power
a former monopoly that has been broken up by the government
a government-granted franchise or monopoly
In monopolistic competition producers....
have a full ability to set prices
have some ability to set prices
have no ability to set prices
What type of products will firms produce in monopolistic competition?
Firms produce significantly differentiated products
Firms produce slightly differentiated products
Firms produce homogenous products with one modification
Firms produce a variety of different products
