Market Structure and Competitive Strategies Quiz
Test your knowledge of market structures, competition, and strategies with these industrial organization quiz questions.
#1
Which market structure is characterized by a large number of sellers, homogeneous products, and ease of entry and exit?
Monopoly
Oligopoly
Perfect Competition
Monopolistic Competition
#2
What is an example of a non-price competition strategy?
Discounts and promotions
Lowering product quality
Price matching
Increasing production cost
#3
What is a barrier to entry in a market?
A government subsidy
Factors that make it difficult for new firms to enter a market
Low demand for a product
Perfect competition
#4
In which market structure do a few large firms dominate the market and influence prices?
Perfect Competition
Oligopoly
Monopoly
Monopolistic Competition
#5
What is a characteristic of a pure monopoly?
Numerous sellers
One seller with no close substitutes
Homogeneous products
Ease of entry and exit
#6
What is a characteristic of monopolistic competition?
A single seller dominating the market
Homogeneous products
High barriers to entry
Product differentiation
#7
Which competitive strategy focuses on offering unique and high-quality products to a specific market segment?
Cost Leadership
Focus Differentiation
Cost Focus
Differentiation Focus
#8
In an oligopoly, how do firms often compete?
By offering identical products
Through collusion and price fixing
By emphasizing product differentiation
By setting prices equal to production cost
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