#1
Which market structure is characterized by a large number of firms, homogeneous products, and ease of entry and exit?
Perfect competition
ExplanationMany firms selling identical products with easy entry and exit.
#2
In which market structure do a few large firms dominate the market?
Oligopoly
ExplanationMarket dominance by a small number of large firms.
#3
What is the main characteristic of a perfectly competitive market?
Many firms selling identical products
ExplanationNumerous firms selling the same products.
#4
Which of the following is a feature of a monopoly?
Single seller with significant control over price
ExplanationOne seller with substantial influence on pricing.
#5
Which market structure is characterized by a single seller with no close substitutes?
Monopoly
ExplanationOne seller with no comparable alternatives.
#6
What is the demand curve like for a perfectly competitive firm?
Horizontal
ExplanationPrice remains constant as quantity increases.
#7
What is a characteristic of monopolistic competition?
Many firms selling similar but not identical products
ExplanationFirms offer similar products with slight differentiation.
#8
Which market structure is most likely to result in long-term economic profits for firms?
Monopoly
ExplanationSingle seller with control over price, often leading to profits.
#9
In which market structure do firms engage in strategic interdependence?
Oligopoly
ExplanationFirms' decisions influenced by rivals' actions.
#10
What is a characteristic of monopolistic competition compared to perfect competition?
Product differentiation
ExplanationProducts have unique features in monopolistic competition.
#11
Which market structure has the highest level of product differentiation?
Monopolistic competition
ExplanationFirms offer products with unique characteristics.
#12
What is a characteristic of a cartel in an oligopoly?
Colludes to fix prices and output levels
ExplanationFirms cooperate to control prices and production.
#13
What is an example of a barrier to entry in a monopolistic market?
High start-up costs
ExplanationSignificant initial investment required to enter.
#14
What is an example of a natural barrier to entry in a market?
Limited availability of essential resources
ExplanationScarcity of key resources necessary for entry.
#15
What is an example of a legal barrier to entry?
Intellectual property rights
ExplanationLaws protecting exclusive rights to ideas or inventions.
#16
What is a technological barrier to entry in a market?
Patents and proprietary technology
ExplanationExclusive rights to inventions or technology.
#17
What is an example of a legal barrier to entry in a market?
Intellectual property rights
ExplanationLegal protection of creative or innovative works.