#1
Which market structure is characterized by a large number of sellers and buyers with identical products?
Perfect Competition
ExplanationPerfect Competition involves numerous sellers and buyers with identical products.
#2
In a monopolistic market, what is a key characteristic of products?
Differentiated
ExplanationMonopolistic markets feature products with differentiation.
#3
Which of the following is a feature of an oligopoly?
Few large interdependent firms
ExplanationOligopoly involves a few large, interdependent firms in the market.
#4
What is a characteristic of a monopolistic competition market structure?
Product differentiation
ExplanationMonopolistic competition is characterized by product differentiation.
#5
What is a barrier to entry in the context of market structures?
Conditions that make it difficult for new firms to enter a market
ExplanationBarriers to entry are conditions hindering new firms from entering a market.
#6
In a perfectly competitive market, what is the level of market power held by individual firms?
Low
ExplanationPerfectly competitive markets feature low market power for individual firms.
#7
What is a common feature of a monopolistic competition market?
Product differentiation
ExplanationMonopolistic competition commonly features product differentiation.
#8
Which market structure is most likely to lead to economies of scale?
Monopoly
ExplanationMonopolies are most likely to lead to economies of scale.
#9
What is the primary focus of antitrust laws in the context of market structures?
Preventing anti-competitive behavior
ExplanationAntitrust laws primarily aim to prevent anti-competitive behavior.
#10
Which market structure has only one seller with significant control over the market?
Monopoly
ExplanationMonopoly is a market structure with a single seller exerting significant control.
#11
Which market structure is most likely to result in product innovation and differentiation?
Monopolistic Competition
ExplanationMonopolistic competition often leads to product innovation and differentiation.
#12
What is a collusion in the context of an oligopoly?
Legal agreement between firms to fix prices
ExplanationCollusion in oligopoly is a legal agreement among firms to fix prices.
#13
In which market structure is the demand curve for the firm also the market demand curve?
Perfect Competition
ExplanationPerfect competition has the firm's demand curve identical to the market's.
#14
What is the primary characteristic of a natural monopoly?
A single seller with control over the market
ExplanationA natural monopoly features a single seller with market control.
#15
What is the relationship between price and marginal revenue for a monopolist?
Price is always less than marginal revenue
ExplanationA monopolist's price is consistently less than marginal revenue.
#16
Which market structure often leads to non-price competition?
Monopolistic Competition
ExplanationMonopolistic competition frequently involves non-price competition.