Market Structure and Strategic Behavior Quiz

Test your knowledge on market structures! Explore monopolies, oligopolies, perfect competition, and monopolistic competition in this quiz.

#1

Which market structure is characterized by a large number of firms, homogeneous products, and easy entry and exit?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#2

In which market structure does a single firm dominate the entire market, controlling the supply of a particular product or service?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#3

What is a characteristic of a perfectly competitive market?

High barriers to entry
Product differentiation
Many buyers and sellers
Control over price by individual firms
#4

What is a characteristic of a monopoly market structure?

High degree of price competition
Numerous small firms
Unique product with no close substitutes
Low barriers to entry
#5

Which market structure is characterized by a few large firms dominating the market?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#6

What is the primary characteristic of a perfectly competitive market?

High barriers to entry
Product differentiation
Many buyers and sellers
Control over price by individual firms
#7

Which of the following is a characteristic of monopolistic competition?

Few firms in the market
Homogeneous products
High barriers to entry
Product differentiation
#8

What is a key strategy used by firms in an oligopoly?

Price discrimination
Predatory pricing
Collusion
Perfect price discrimination
#9

In which market structure do firms engage in strategic behavior such as advertising and product differentiation?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#10

What is a characteristic of an oligopoly market structure?

High number of firms
Identical products
Mutual interdependence
Ease of entry and exit
#11

Which of the following market structures has the least amount of product differentiation?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#12

What is the primary goal of a monopolistically competitive firm engaging in product differentiation?

Maximize market share
Minimize costs
Maximize profits
Eliminate competition
#13

Which market structure often leads to the most efficient allocation of resources?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#14

Which of the following is NOT a barrier to entry in a monopoly market structure?

Control over essential resources
Economies of scale
Government regulation
Numerous competitors
#15

Which market structure typically leads to the highest level of market power for individual firms?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#16

Which market structure is most likely to result in long-term economic profits for firms?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#17

What is a common strategy used by firms in an oligopoly to maintain market power?

Price competition
Collusion
Perfect price discrimination
Market expansion
#18

Which market structure is likely to result in excess capacity in the long run?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly

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