#1
Which market structure is characterized by a large number of sellers and buyers, homogeneous products, and free entry and exit?
Perfect competition
ExplanationMany competitors selling identical goods.
#2
In which market structure do a few firms dominate the market, and there are significant barriers to entry?
Oligopoly
ExplanationMarket domination by a handful of firms with entry barriers.
#3
What is a characteristic of a monopoly?
Single seller
ExplanationMarket control by one entity with no competitors.
#4
Which market structure exhibits the highest level of market power?
Monopoly
ExplanationMaximum market control and influence.
#5
What is a characteristic of monopolistic competition?
Product differentiation
ExplanationDistinctive products offered by numerous firms.
#6
Which market structure typically leads to the highest level of product differentiation?
Monopolistic competition
ExplanationMost product variety among competitors.
#7
What is a characteristic of an oligopoly?
A few firms with differentiated products
ExplanationSmall group of firms offering diverse products.
#8
Which market structure tends to have the highest barriers to entry?
Monopoly
ExplanationGreatest obstacles for new market players.
#9
What is a characteristic of a natural monopoly?
One dominant firm
ExplanationSingle dominant entity due to cost efficiencies.
#10
What is a characteristic of a contestable market?
Low barriers to entry
ExplanationEasy entry and exit of firms due to low obstacles.
#11
What is a characteristic of a monopolistically competitive market?
Many firms with differentiated products
ExplanationNumerous firms offering varied products.