#1
Which market structure is characterized by many small firms, identical products, and easy entry and exit?
Perfect competition
ExplanationNumerous small firms, identical products, low entry barriers.
#2
In a monopoly, there is:
One seller and many buyers
ExplanationSingle seller controls market, numerous buyers.
#3
What is a characteristic of a perfectly competitive market?
Many small firms
ExplanationLarge number of small firms with no market control.
#4
Which market structure is characterized by a single seller with no close substitutes?
Monopoly
ExplanationNo competing alternatives, sole seller.
#5
Which of the following is a characteristic of monopolistic competition?
Product differentiation
ExplanationDifferentiated products, many sellers.
#6
Which market structure often results in non-price competition?
Monopolistic competition
ExplanationProduct differentiation leads to non-price competition.
#7
Which of the following is a characteristic of an oligopoly?
Few sellers and many buyers
ExplanationSmall number of large firms, numerous buyers.
#8
What is a cartel?
A legal agreement between firms to fix prices
ExplanationFirms collaborate to control prices and output.
#9
What is an example of a natural monopoly?
A local water supply company
ExplanationSingle firm due to high infrastructure costs.
#10
Price discrimination is most commonly associated with which market structure?
Monopoly
ExplanationSingle seller has market control, sets different prices.
#11
Which market structure is most likely to result in allocative and productive inefficiency?
Monopoly
ExplanationSingle seller leads to inefficiencies in resource allocation and production.
#12
Which of the following market structures has the highest barriers to entry?
Monopoly
ExplanationSingle firm control, significant entry barriers.