#1
Which of the following is a characteristic of a perfectly competitive market?
High barriers to entry
Many buyers and sellers
Control over prices by individual firms
Product differentiation
#2
In which market structure do firms have the least control over prices?
Monopoly
Oligopoly
Perfect competition
Monopolistic competition
#3
What market structure is characterized by a single seller of a unique product with no close substitutes?
Oligopoly
Monopolistic competition
Monopoly
Perfect competition
#4
Which market structure is characterized by few firms dominating the market?
Perfect competition
Oligopoly
Monopoly
Monopolistic competition
#5
What type of market structure is characterized by product homogeneity and perfect information?
Oligopoly
Monopolistic competition
Perfect competition
Monopoly
#6
What is the primary characteristic of monopolistic competition?
Homogeneous products
Price taker firms
Mutual interdependence
Product differentiation
#7
Which market structure has the highest degree of market power?
Oligopoly
Monopolistic competition
Perfect competition
Monopoly
#8
Which of the following is a characteristic of a monopolistic competition market?
Identical products
Many buyers and sellers
Mutual interdependence
Perfect information
#9
What is the main reason why firms in oligopoly tend to engage in non-price competition?
High barriers to entry
Mutual interdependence
Identical products
Perfect information
#10
Which market structure has the highest level of product differentiation?
Perfect competition
Monopolistic competition
Monopoly
Oligopoly
#11
What is a key characteristic of a natural monopoly?
Many firms producing identical products
Low barriers to entry
High fixed costs relative to variable costs
Firms have significant control over prices
#12
What is an example of a barrier to entry in a market?
Government regulations
Perfect information
Many buyers and sellers
Identical products
#13
In a perfectly competitive market, what is the relationship between price and marginal revenue for an individual firm?
Price > Marginal revenue
Price = Marginal revenue
Price < Marginal revenue
Price and Marginal revenue are unrelated
#14
In which market structure are firms likely to engage in strategic behavior such as collusion?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#15
What is a characteristic of a contestable market?
High barriers to entry
Existence of sunk costs
Ease of entry and exit
Control over prices by individual firms
#16
What is the primary characteristic of a perfectly elastic demand curve?
The demand curve is horizontal
The demand curve is vertical
The demand curve is downward sloping
The demand curve is upward sloping
#17
What is the primary characteristic of a contestable market?
High barriers to entry
Existence of sunk costs
Ease of entry and exit
Control over prices by individual firms