WorksheetsMarket Structures Quiz
Total questions: 26
Worksheet time: 16mins
A product in the market refers to:
A commodity only
Goods or services sold in the market
Only services sold in the market
None of the above
Which of the following is NOT an essential of a market?
Willing buyers and sellers
Commodities to be bought or sold
Fixed government taxes
A market price
A perfect competition market is characterized by:
Only one seller
No freedom of entry or exit
Many buyers and sellers
Price discrimination
In a perfect competition market, the products are:
Differentiated
Identical
Substitutes
Rare
What is a major feature of a monopoly market?
Many buyers and many sellers
No freedom of entry
Freedom of entry
Perfect mobility of factors of production
Price discrimination in a monopoly occurs when:
The seller charges the same price in all markets
Different prices are charged for the same product in different markets
The government sets all the prices
Buyers control the price
Which of the following is NOT a source of monopoly power?
Control of an important input in production
Existence of internal economies of scale
Freedom of entry into the market
High costs of entering the market
The term oligopoly refers to a market:
With many small firms
With few large firms
With only one firm
With perfect knowledge of the market
In a monopolistic competition market:
Products are differentiated
There is only one seller
Products are identical
Price discrimination is impossible
What kind of market is described by having many buyers and sellers dealing with a similar but differentiated product?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
The government can control monopolies by:
Encouraging price increases
Forming monopoly commissions
Eliminating product branding
Subsidizing monopoly firms
An example of a collusive oligopoly is:
Firms that compete on price
Firms that cooperate in determining prices
A monopoly firm setting prices
Firms with free entry
A feature of a perfect competition market is:
High advertising costs
No transport costs
Price discrimination
Limited mobility of factors of production
In a monopoly market, the demand curve is:
Horizontal
Upward sloping
Perfectly elastic
Downward sloping
Which of the following markets has the most rivalry between firms?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
In monopolistic competition, the seller acts as:
A price taker
A price maker
A monopolist
A government regulator
The kinked demand curve is a feature of:
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
The difference between monopoly and monopolistic competition is:
Monopoly has many sellers, monopolistic competition has one
Monopoly has only one seller, monopolistic competition has many
Monopolistic competition lacks product differentiation
Monopoly has no price control
In an oligopoly market, when one firm lowers its price:
Other firms are likely to increase their prices
Other firms will also lower their prices
The market price becomes stable
Price leadership begins
Which of the following is NOT a feature of monopolistic competition?
Freedom of entry and exit
Differentiated products
One seller controls the entire market
Perfect knowledge of the market
Fill in the Spaces (5)
In a monopoly market, the product has no close (a) .
In perfect competition, there is no preferential treatment of ________ and ________.
buyers
sellers
Price discrimination refers to charging different (a) for the same product in different markets.
In an oligopoly, firms are said to be (a) on each other in decision-making.
A perfect competition market is characterized by a common prevailing (a) .
