#1
Which market structure is characterized by a large number of firms, homogeneous products, and free entry and exit?
Perfect competition
ExplanationMany firms with identical products and easy entry/exit.
#2
What is a characteristic of an oligopoly market structure?
Few sellers with identical or differentiated products
ExplanationSmall number of sellers offering similar or different products.
#3
Which market structure has only one seller with no close substitutes?
Monopoly
ExplanationSingle seller with exclusive control over the market.
#4
What is a characteristic of a monopoly?
There is only one seller
ExplanationExclusive control by a single seller.
#5
Which of the following is not a barrier to entry in a market?
Perfect information
ExplanationComplete availability of information.
#6
In which market structure do firms engage in non-price competition?
Monopolistic competition
ExplanationFirms compete through factors other than price.
#7
Which of the following is a feature of a natural monopoly?
Economies of scale
ExplanationCost advantages due to large-scale production.
#8
Which market structure is characterized by a few large firms dominating the market?
Oligopoly
ExplanationSmall number of dominant players.
#9
What is a characteristic of monopolistic competition?
Firms engage in product differentiation
ExplanationEach firm offers differentiated products.
#10
Which market structure is most likely to result in long-run economic profits?
Monopoly
ExplanationSole control allows for sustained profits.
#11
What is an example of a barrier to entry in a monopoly market?
Government regulation
ExplanationLegal restrictions prevent new entrants.
#12
In which market structure do firms have the least control over price?
Perfect competition
ExplanationPrices are dictated by market forces.