#1
Which market structure features a single seller producing a unique product with no close substitutes?
Monopolistic competition
Oligopoly
Perfect competition
Monopoly
#2
In perfect competition, the demand curve faced by an individual firm is:
Perfectly elastic
Perfectly inelastic
Unit elastic
Downward sloping
#3
What is a characteristic of monopolistic competition?
Homogeneous products
Product differentiation
Significant barriers to entry
A single seller
#4
In the context of market structures, 'price taker' refers to firms in:
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#5
Which market structure best represents a scenario with many sellers, each selling slightly differentiated products, but not enough to eliminate competition?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#6
In which market structure do firms have the most pricing power?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#7
Price discrimination is more feasible in markets with:
Many sellers and product differentiation
A single seller and no close substitutes for the product
Homogeneous products and many sellers
Few sellers and significant barriers to entry
#8
In an oligopoly market, a key feature is:
Many sellers with differentiated products
A single seller and many buyers
A few sellers and strategic interdependence
Perfect information and no barriers to entry
#9
Marginal cost pricing is more likely to be observed in which market structure?
Monopoly
Perfect competition
Monopolistic competition
Oligopoly
#10
In which market structure are strategic interactions between firms most significant?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#11
Bertrand competition is characterized by firms competing on:
Product quality
Advertising
Price
Location
#12
What does the term 'contestable market' imply?
The market has a single, uncontested leader
Barriers to entry and exit are low, allowing for potential competition
The market is dominated by a few large firms
Products are highly differentiated
#13
Which market structure is most likely to lead to product innovation and diverse choices for consumers?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#14
What does the Herfindahl-Hirschman Index (HHI) measure?
The degree of monopolistic competition
The level of income inequality within an economy
The concentration of firms in a market
The price elasticity of demand for a product
#15
What does 'natural monopoly' refer to?
A market where competition is based solely on product quality
A market dominated by a single seller due to natural resources
A monopoly that arises due to high fixed costs and significant economies of scale
A government-created monopoly