#1
In economics, what is a characteristic of a perfectly competitive market?
There are many buyers and sellers
There is only one seller
Products are differentiated
There are barriers to entry
#2
What is a characteristic of a monopoly market?
There are many firms
There is only one firm
Products are identical
There is easy entry and exit
#3
What is the main objective of a firm operating in a perfectly competitive market?
Maximize profits
Set the highest possible price
Minimize costs
Maximize market share
#4
Which of the following is an example of a natural monopoly?
Electricity distribution
Restaurant chain
Clothing store
Software development company
#5
What is a characteristic of a homogeneous product in economics?
It is unique and differentiated
It is identical across producers
It varies in quality
It is only available in specific markets
#6
What is a characteristic of a perfectly competitive market in terms of product differentiation?
Products are highly differentiated
Products are identical
Products are moderately differentiated
Products are custom-made
#7
Which market structure is characterized by a large number of firms selling products that are differentiated?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#8
Which of the following is a barrier to entry in a market?
Many competitors
Low initial costs
Highly differentiated products
Patents and copyrights
#9
In which market structure does a firm have the least control over the price of its product?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#10
What is a characteristic of an oligopoly market?
There are many firms
There is only one firm
Products are identical
Firms are interdependent
#11
Which of the following is a characteristic of a perfectly elastic demand curve?
The demand curve is horizontal
The demand curve is vertical
The demand curve slopes upward
The demand curve slopes downward
#12
In which market structure are there only a few firms, each with a significant market share?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#13
What is a characteristic of a monopolistic competition market?
There are many firms
There is only one firm
Products are identical
Firms have some control over price
#14
Which of the following is a strategy often used by firms in monopolistic competition to differentiate their products?
Price discrimination
Perfect price discrimination
Advertising
Cost leadership
#15
What concept refers to a situation where a single firm can produce at a lower cost than two or more firms producing the same quantity of output?
Economies of scale
Diseconomies of scale
Elasticity of demand
Marginal cost
#16
In a monopolistically competitive market, what tends to happen in the long run as firms differentiate their products?
Firms earn supernormal profits
Firms experience a decrease in demand
Firms' demand becomes more elastic
Firms' profits decrease to zero
#17
Which of the following is a characteristic of a contestable market?
High barriers to entry
Few competitors
Low sunk costs
Perfect information
#18
Which of the following is a strategy often used by firms in an oligopoly market?
Price competition
Product differentiation
Perfect price discrimination
Low product variability