#1
Which of the following is a characteristic of perfect competition?
A large number of buyers and sellers
Product differentiation
Barriers to entry
Price-setting power for individual firms
#2
What is a monopolistic competition market characterized by?
Homogeneous products
A single seller dominating the market
Many sellers offering differentiated products
Perfect information among buyers and sellers
#3
What is a key feature of perfect competition?
Product differentiation
Price-setting power for individual firms
Firms are price takers
Few sellers
#4
What is a characteristic of a perfectly competitive market?
Firms engage in strategic pricing
Products are differentiated
There are no barriers to entry
Firms have price-setting power
#5
Which of the following is an example of a monopolistic competition market?
A local electricity provider
A wheat farmer in a small town
A fast-food restaurant chain
A natural gas pipeline company
#6
Which market structure is characterized by a single seller with complete control over the market?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#7
Which market structure typically has the highest barriers to entry?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#8
What is a characteristic of an oligopoly market?
Many small firms
A single seller
Mutual interdependence among firms
No product differentiation
#9
What is a characteristic of a monopolistic competition market?
Many sellers offering identical products
Price-taking behavior by firms
Mutual interdependence among firms
No product differentiation
#10
In which market structure do firms face a downward-sloping demand curve?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#11
Which of the following is a characteristic of an oligopoly market?
A large number of sellers
Homogeneous products
Mutual interdependence among firms
No barriers to entry
#12
What is a characteristic of monopolistic competition?
Mutual interdependence among firms
Many sellers offering identical products
No product differentiation
Price-taking behavior by firms
#13
Which of the following is an example of a barrier to entry?
Government regulation
Homogeneous products
Perfect information
Decrease in production costs
#14
Which market structure tends to result in the highest level of economic profits for firms in the long run?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#15
What does the Herfindahl-Hirschman Index measure?
Market concentration
Price elasticity of demand
Consumer surplus
Firm efficiency
#16
Which market structure tends to result in the highest level of consumer surplus?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#17
Which market structure typically results in excess capacity?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#18
Which market structure typically results in the lowest level of economic profits?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition