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Market Structure- 6th Form

Total questions: 22

Worksheet time: 25mins

Name
Class
Date
1.
How many firms are there in a perfect competition?
a)
1
b)
2-5
c)
Many
2.
Why does no one firm dominate in a perfect competition?
a)
No firm wants to
b)
Each firm sells to different people
c)

The presence of many participants means no single firm or buyer has enough market power to influence the market price

d)
One firm will eventually dominate and make it a monopoly
3.
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
4.
How many firms are there in a monopoly?
a)
1
b)

2-50

c)
Many
d)

2-20

5.
An industry that is dominated by a few large firms is 
a)
monopolistic competition.
b)
a monopoly.
c)
perfect competition.
d)
an oligopoly.
6.
Businesses can "Collude" or work together to set prices
a)
Oligopoly
b)
Monopoly
c)
Perfect Competition
7.
Choose the example that goes best with an oligopoly.
a)
apples
b)
cell phone providers
c)
utilities
d)
clothing
8.

Which of the following industries is an example of a monopoly?

a)

utilities/water

b)

department stores

c)

auto industry

d)

commercial airlines

9.
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
10.

Firms in this kind of market produce goods that are very close substitutes.

a)

Perfect Competition

b)

Pure Monopoly

c)

Monopolistic Competition

d)

Oligopoly

11.
In which market structure is there the LEAST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
12.
In which market structure is there the MOST competition?
a)
Monopoly
b)
Oligopoly
c)
Monopolistic Competition
d)
Perfect Competition
13.
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
14.

Which formula calculates total revenue?

a)
  • A) Price × Quantity sold

b)
  • B) Price + Quantity sold

c)
  • C) Price - Quantity sold

d)
  • D) Price ÷ Quantity sold

15.

What is Marginal Revenue (MR)?

a)
  • A) Revenue minus costs

b)
  • B) Total revenue divided by quantity sold

c)
  • C) Revenue generated from selling one additional unit of a good

d)
  • D) Revenue generated from the total quantity sold

16.

Average Revenue (AR) is calculated as:

a)

Total Revenue ÷ Total Cost

b)

Total Cost ÷ Quantity

c)

Total Revenue ÷ Quantity

d)

Price ÷ Marginal Revenue

17.

A firm earns a normal profit when its

a)

accounting profit equals 0

b)

accounting profit equals its economic profit

c)

total revenue equals its total costs

d)

economic profit is positive

e)

economic profit equals its total explicit and implicit costs

18.

________ is formulated as Revenues - Explicit costs - Opportunity costs

a)

Accounting Profit

b)

Economic Profit

c)

Gross Profit

d)

Net Profit

19.

A firm observes the following data: at a price of $8, it sells 200 units; at a price of $6, it sells 300 units. Calculate the total revenue at a price of $8

a)

1600

b)

3200

c)

1500

d)

4000

20.

A firm observes the following data: at a price of $8, it sells 200 units; at a price of $6, it sells 300 units. Calculate the average revenue at a price of $8

a)

1600

b)

8

c)

6

d)

3200

21.

A firm observes the following data: at a price of $8, it sells 200 units; at a price of $6, it sells 300 units. Calculate the total revenue at a price of $6

a)

1200

b)

1600

c)

1800

d)

3200

22.

A firm observes the following data: at a price of $8, it sells 200 units; at a price of $6, it sells 300 units. Calculate the marginal revenue at a price of $6

a)

200

b)

0

c)

400

d)

600