#1
Which of the following is NOT a characteristic of monopolistic competition?
Price taker
ExplanationMonopolistic competition involves firms having some control over prices.
#2
What is oligopoly?
A market structure with few sellers and similar or identical products
ExplanationOligopoly is characterized by a small number of firms with significant market power.
#3
Which of the following is a characteristic of monopolistic competition?
Some control over price
ExplanationMonopolistic competition gives firms some power to influence prices.
#4
What is a feature of monopolistic competition?
No barriers to entry
ExplanationMonopolistic competition typically has relatively low barriers to entry.
#5
In which market structure does a single firm dominate the market and have significant market power?
Monopoly
ExplanationMonopoly involves a single seller controlling the market without close substitutes.
#6
What is a characteristic of perfect competition?
Homogeneous products
ExplanationPerfect competition features identical or homogeneous products among firms.
#7
Which market structure is characterized by a small number of large firms dominating the market?
Oligopoly
ExplanationOligopoly involves a few large firms exerting substantial influence over the market.
#8
What is a distinguishing feature of oligopoly?
Interdependence among firms
ExplanationInterdependence among firms is a key feature of oligopoly where decisions of one firm affect others.
#9
Which market structure is most likely to result in excess capacity?
Monopolistic competition
ExplanationMonopolistic competition often leads to excess capacity due to product differentiation.
#10
In which market structure do firms have the least control over the price of their products?
Perfect competition
ExplanationPerfect competition involves firms being price takers with no control over prices.
#11
What is a characteristic of oligopoly?
Interdependence among firms
ExplanationOligopoly is characterized by firms being mutually dependent, where decisions of one firm affect others.