Market Structure and Product Differentiation Quiz

Test your knowledge on perfect competition, monopolistic competition, oligopoly, and monopoly. Understand market structures and product differentiation.

#1

What is a characteristic of perfect competition?

Few sellers in the market
Product differentiation
Price taker
Barriers to entry
#2

In a duopoly, how many firms dominate the market?

One
Two
Several
Many
#3

What is a characteristic of a monopoly?

Many sellers
Product differentiation
Single seller
Low barriers to entry
#4

In which market structure does a single firm act as the price setter?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#5

What is a characteristic of a duopoly?

One seller
Two sellers
Several sellers
Perfect competition
#6

Which market structure is characterized by a large number of firms, differentiated products, and low barriers to entry?

Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#7

In monopolistic competition, what role does product differentiation play?

Products are identical
Products are unique
No product differentiation
Homogeneous products
#8

In a monopolistic market, what is the impact of product differentiation on pricing?

Prices are uniform for all products
Prices are determined solely by demand
Firms have control over pricing
Prices are regulated by the government
#9

What is a common feature of both oligopoly and monopolistic competition?

Homogeneous products
Many buyers and sellers
Perfect information
Barriers to entry
#10

Which market structure has the most control over the price of its product?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#11

What is a potential outcome of collusion in an oligopolistic market?

Increased competition
Lower prices
Market dominance
Antitrust lawsuits
#12

What is a key characteristic of an oligopoly?

Single seller dominates the market
Many small firms
Identical products
Interdependence among firms
#13

Which market structure has the least government intervention?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#14

Which market structure is likely to result in the highest level of advertising and marketing expenses?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#15

What is an example of a barrier to entry in an oligopolistic market?

Homogeneous products
High startup costs
Perfect competition
Low market concentration
#16

In which market structure is demand highly elastic?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#17

What is a distinguishing feature of monopolistic competition?

Identical products
Many sellers
High barriers to entry
Perfect information

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