Economic Market Structures and Competition Quiz

Test your knowledge on economic market structures, including perfect competition, monopolies, oligopolies, and monopolistic competition. Learn about pricing control, efficiency, and product differentiation.

#1

Which of the following is a characteristic of a perfectly competitive market?

High barriers to entry
Many buyers and sellers
Product differentiation
Control over prices by individual firms
#2

In which market structure do firms have the least control over prices?

Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#3

Which market structure is characterized by a single seller with complete control over the market?

Oligopoly
Monopolistic competition
Perfect competition
Monopoly
#4

What is a characteristic of an oligopoly?

Many small firms
Homogeneous products
Interdependence among firms
Price-taking behavior
#5

Which market structure often results in non-price competition?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#6

What is a characteristic of monopolistic competition?

There is only one seller in the market
Firms produce identical products
There are significant barriers to entry
Firms engage in product differentiation
#7

Which market structure is characterized by a few large firms dominating the market?

Perfect competition
Oligopoly
Monopoly
Monopolistic competition
#8

Which market structure typically leads to the highest level of efficiency?

Monopolistic competition
Perfect competition
Monopoly
Oligopoly
#9

What is a characteristic of a natural monopoly?

Many firms competing
Low economies of scale
High barriers to entry
Price-taking behavior
#10

Which market structure is characterized by free entry and exit of firms?

Oligopoly
Perfect competition
Monopoly
Monopolistic competition
#11

What is a common feature of monopolies?

Low barriers to entry
Absence of market power
Price-setting ability
Many substitutes for the product
#12

Which of the following market structures is most likely to lead to allocative inefficiency?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#13

What is a common characteristic of a cartel?

Competition among members
Price leadership
Cooperation among firms
Perfect competition
#14

What is a characteristic of a duopoly?

Single seller dominating the market
Many sellers with identical products
Existence of only two sellers
Perfect competition
#15

Which market structure is likely to have the least allocative inefficiency?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition

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