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WorksheetsMonopoly and Perfect Competition Quiz
Total questions: 37
Worksheet time: 18mins
What is a key feature of a monopoly market?
Free entry and exit
Homogeneous products
Multiple sellers
Single seller
In a monopoly, what is true about substitutes?
There are many close substitutes
There are no close substitutes
Substitutes are cheaper
Substitutes are of higher quality
What restricts entry of rivals in a monopoly?
Barriers to entry
High demand
Low prices
Consumer preferences
What does a monopolist have complete control over?
Market demand
Market supply
Consumer preferences
Product quality
What is a monopolist considered in terms of pricing?
Price regulator
Price maker
Price follower
Price taker
What is price discrimination?
Charging different prices to different consumers
Offering discounts to all consumers
Charging the same price to all consumers
Setting prices based on production costs
In perfect competition, how many sellers and buyers are there?
One seller and many buyers
Few sellers and buyers
No sellers and buyers
Many sellers and buyers
What type of product is sold in a perfectly competitive market?
Customized products
Luxury products
Homogeneous products
Unique products
What is a feature of perfect competition regarding entry and exit?
High barriers to entry
Government-controlled entry
Free entry and exit
Restricted entry
What type of price prevails under perfect competition?
High price
Discounted price
Single uniform price
Variable price
What do buyers and sellers possess in a perfectly competitive market?
No knowledge
Partial knowledge
Perfect knowledge
Limited knowledge
What is the mobility of factors of production in perfect competition?
No mobility
Limited mobility
Perfect mobility
Immobility
What is assumed to be absent in perfect competition?
Government intervention
Market demand
Consumer choice
Product variety
According to Mrs. Joan Robinson, what is perfect competition?
When prices are fixed
When demand is perfectly elastic
When there is only one seller
When supply is perfectly elastic
What prevents firms from entering a monopoly?
Barriers to Entry
Technology
Price
Barriers to Travel
Market is
place where buyers meet sellers
Mandi /bazar
Is a situation where optimum customers meet optimum sellers
online market
The product sold in perfect competition is
Homogenous
have close substitutes
No close substitutes
Both homogenous and close substitutes
Entry and exit in perfect competition is
restricted
free
both are correct
Number of buyers and sellers in a perfect competition is
few
large
2
This market structure occurs when an industry is filled with many sellers who sell similar but differentiated products
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
This market structure is when on industry is controlled by a handful of companies
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
In a monopoly, what is true about substitutes?
There are many close substitutes
There are no close substitutes
Substitutes are cheaper
Substitutes are of higher quality
What restricts entry of rivals in a monopoly?
Barriers to entry
High demand
Low prices
Consumer preferences
Which of the following markets represents the concept of perfect competition the best?
energy market
tennis shoe market
tomato market
cell phone market
In which of the following markets are firms said to be "price takers"?
monopoly
oligopoly
monopolistic competition
perfectly competitive
Which of the following best describes the products sold in a perfectly competitive market?
slight differences between products
entirely different products
products protected by a 20-year patent
identical products
How many firms are there in a perfectly competitive market?
many
one
two
a group of 20
What is a monopoly?
A market with many sellers and differentiated products
A market with one seller and no close substitute
A market with perfect competition
A market with multiple seller and identical products
Which of the following is the best example of a perfectly competitive market?
diamonds
athletic shoes
soft drinks
farming
The product sold in perfect competition is
Homogenous
have close substitutes
No close substitutes
Both homogenous and close substitutes
Entry and exit in perfect competition is
restricted
free
both are correct
Number of buyers and sellers in a perfect competition is
few
large
2
What is a monopoly?
A market structure with many sellers and one buyer
A market structure with a single seller and many buyers
A market structure with many sellers and many buyers
A market structure with a single buyer and many sellers
7. The term poly is derived from the Greek word
A. Pollen
B. Polien
C. Polleen
D. Poline
