#1
Which of the following is a characteristic of a monopoly?
Single seller
ExplanationOnly one seller dominates the market.
#2
In a perfectly competitive market, what does the demand curve look like?
Horizontal
ExplanationPrice remains constant regardless of quantity demanded.
#3
What is a characteristic of a competitive market?
Homogeneous products
ExplanationProducts offered by firms are identical.
#4
Which market structure has the least market power?
Perfect competition
ExplanationFirms have no market power, they are price takers.
#5
What is a characteristic of a monopoly market?
Single seller
ExplanationOnly one firm dominates the market.
#6
Which market structure has the highest barriers to entry?
Monopoly
ExplanationEntry into the market is difficult due to exclusive control.
#7
What is the key characteristic of monopolistic competition?
Product differentiation
ExplanationFirms differentiate their products to gain market share.
#8
What is a characteristic of an oligopoly market?
Few sellers
ExplanationMarket is dominated by a small number of large firms.
#9
Which market structure has the highest level of product differentiation?
Monopolistic competition
ExplanationProducts are highly differentiated to capture niche markets.
#10
What is a characteristic of a monopolistically competitive market?
Many sellers
ExplanationNumerous firms compete with differentiated products.
#11
Which market structure typically results in non-price competition?
Monopolistic competition
ExplanationCompeting on factors other than price, like branding or quality.
#12
Which market structure often leads to collusion among firms?
Oligopoly
ExplanationFirms may collude due to their few numbers.
#13
What is a key characteristic of a perfectly competitive market?
Many sellers and buyers
ExplanationLarge number of buyers and sellers with homogeneous products.
#14
Which market structure is characterized by interdependent decision-making among firms?
Oligopoly
ExplanationFirms' decisions impact each other due to market dominance.
#15
What is a key feature of a natural monopoly?
High fixed costs
ExplanationHigh initial investment costs due to infrastructure.