#1
In economics, what does the term 'competitive market' refer to?
A market with only one seller
A market with few sellers
A market with many buyers and sellers
A market with no government intervention
#2
What is the primary goal of a firm in a competitive market?
Maximize profit
Maximize market share
Minimize costs
Maximize revenue
#3
What is the primary objective of antitrust laws?
To promote monopolies
To restrict competition
To prevent unfair business practices
To control market prices
#4
In a monopolistic competition, what does product differentiation refer to?
Selling identical products
Selling products at the same price
Making products distinct from competitors
Having only one seller in the market
#5
Which of the following is an example of a natural monopoly?
Electricity distribution
Smartphone manufacturing
Coffee shop
Clothing retail store
#6
What is the key characteristic of a perfectly competitive market?
Many sellers with differentiated products
Few sellers with identical products
One seller with significant market power
Many sellers with no market power
#7
In a perfectly competitive market, what is the shape of the firm's demand curve?
Vertical
Horizontal
Downward sloping
Upward sloping
#8
What is the condition for long-run equilibrium in a perfectly competitive market?
Marginal cost equals average total cost
Marginal cost equals marginal revenue
Price equals average total cost
Price equals marginal cost
#9
What is the main feature of an oligopoly market?
Many sellers selling identical products
Few sellers selling differentiated products
One seller with significant market power
One seller with no market power
#10
What is a characteristic of a monopoly market structure?
Many sellers selling identical products
Many buyers with significant market power
One seller with significant market power
Many sellers with no market power
#11
What is a common strategy employed by firms in an oligopoly market?
Price competition
Collusion
Perfect competition
Monopolistic competition
#12
What is a characteristic of a monopolistically competitive market?
Many sellers selling identical products
Few sellers selling differentiated products
One seller with significant market power
One seller with no market power
#13
What is a characteristic feature of monopolistic competition?
Many sellers selling identical products
Few sellers selling differentiated products
One seller with significant market power
One seller with no market power
#14
What is the relationship between marginal revenue and marginal cost at profit maximization in a perfectly competitive market?
Marginal revenue equals marginal cost
Marginal revenue is greater than marginal cost
Marginal revenue is less than marginal cost
Marginal revenue is zero
#15
What is the effect of an increase in demand on the equilibrium price and quantity in a perfectly competitive market?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity increase
Price and quantity decrease
#16
What happens to the demand curve of a perfectly competitive firm if there is an increase in the price of a substitute good?
Shifts left
Shifts right
No shift
Becomes vertical