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Market Structure

Total questions: 20

Worksheet time: 18mins

Name
Class
Date
1.

A perfect competitive firm charges a price that is ____________.

a)

different to other firms

b)

higher than other firms

c)

lower than other firms

d)

similar to other firms

2.

Which of the following describes a monopoly firm?

a)

Single seller

b)

Many sellers

c)

Many substitutes

d)

No barrier to entry

3.

Which of the following is not the characteristics of Perfect Competition?

a)

Barriers of entry

b)

Homogenous product

c)

Firms are price taker

d)

Don't have non price competition

4.

What type of advertising would we expect to see in perfectly competitive markets?

a)

Significant advertising by individual firms

b)

No advertising by individual firms but potential advertising by the industry as a whole

c)

No advertising by individual firms or by the industry as a whole

d)

Significant advertising by individual firms and by the industry as a whole

5.

Perfectly competitive markets sell

a)

differentiated products

b)

homogenous products

c)

a variety of both types of products

6.

Which of the following is not a barrier to entry in a monopolized market?

a)

The presence of many buyers and sellers in the market

b)

The government gives a single firm the exclusive right to produce some good.

c)

The costs of production make a single producer more efficient than a large number of producers.

d)

A key resource is owned by a single firm.

7.

Which of the following best describes an oligopoly?

a)

many monopolistically competitive firms

b)

a few firms sharing monopoly power

c)

a former monopoly that has been broken up by the government

d)

a government-granted franchise or monopoly

8.
Which of the following statements correctly identifies a difference between perfect competition and monopolistic competition? 
a)
In perfect competition there are no barriers to entry, but there are strong barriers in monopolistic competition. 
b)
In perfect competition there are many firms, but in monopolistic competition there are only a few firms. 
c)
In perfect competition the firms all sell products that are exactly the same, but in monopolistic competition each firm sells a slightly differentiated product. 
d)
In perfect competition there are few consumers, but in monopolistic competition there are many consumers. 
9.

The market for agricultural produce is an example of:

a)

monopoly

b)

oligopoly

c)

monopolistic competition

d)

perfect competition

10.

Coke and Pepsi are the main producers and control the soda market. This is an example of:

a)

Oligopoly

b)

Monopoly

c)

Monopolistic Competition

d)

Perfect Competition

11.

Buyers have few choices when it comes down to satellite TV and internet providers. Basically, the producers are pretty much the same. This is an example of

a)

monopoly

b)

oligopoly

c)

monopolistic competition

d)

perfect competition

12.

Your family can only get electricity or natural gas to their home through one provider. There is no other option. This is an example of_

a)

monopoly

b)

monopolistic competition

c)

oligopoly

d)

perfect competition

13.

What is monopolisitc competition?

a)

one company selling identical products under different names

b)

many companies selling similar but not identical products

c)

a very few companies selling identical products

d)

one company selling different products under different names

14.

To attract buyers, monopolistic competitors tend to rely on ______.

a)

low prices

b)

superior products

c)

price controls

d)

advertising and promotions

15.

This industry should be described as which market structure?

a)

perfect competition

b)

oligopoly

c)

monopoly

d)

monopolistic competition

16.
Factors that make it difficult for new firms to enter a market are called
a)
Barriers to entry
b)
Factors of production
c)
Limited supply
d)
Monopolistic Outlook
17.
The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)
a)
monopoly
b)
oligopoly
c)
perfect competition
d)
monopolistic competition
18.

A price-taking firm

a)

cannot influence the price of the product it sells

b)

sets the product's price to whatever level the owner decides upon

c)

talks to rival firms to determine the best price for all of them to charge

19.

Which of the following is true of the monopoly structure?

a)

Monopolies tend to generate high profits, have high barriers of entry, and not have significant competition.

b)

Monopolies tend to generate high profits, have high barriers of entry, and have significant competition.

c)

Monopolies tend to generate high profits, have low barriers of entry, and not have significant competition.

20.

In Monopolistic Competition you would find that purchases are made generally based on __

a)

supply/demand

b)

brand loyalty

c)

price

d)

price of substitute products