#1
Which of the following is a characteristic of a perfectly competitive market?
Many buyers and many sellers
Few sellers with differentiated products
Single seller with monopoly power
High barriers to entry
#2
In perfect competition, what is the shape of the demand curve faced by a firm?
Horizontal
Vertical
Downward sloping
Upward sloping
#3
What is a characteristic feature of a monopoly market structure?
Many sellers with similar products
Single seller with unique product
Few sellers with differentiated products
Numerous buyers and sellers
#4
Which market structure exhibits the highest degree of market power?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#5
What is a characteristic of a perfectly competitive market regarding product differentiation?
High level of product differentiation
Low level of product differentiation
No product differentiation
Moderate level of product differentiation
#6
What is the main characteristic of a monopolistic competition market structure?
Many sellers, identical products
Few sellers, differentiated products
Single seller, unique product
Few sellers, no product differentiation
#7
In oligopoly, what do firms often engage in to avoid price wars and maintain market share?
Collusion
Monopolistic practices
Perfect competition
Price discrimination
#8
In monopolistic competition, what happens to a firm's demand curve in the long run as new firms enter the market?
It becomes perfectly elastic.
It becomes perfectly inelastic.
It becomes more elastic.
It becomes more inelastic.
#9
What is a characteristic behavior of firms in a duopoly market?
High level of competition
Low barriers to entry
Collusive pricing behavior
Perfectly elastic demand
#10
What is a distinguishing feature of monopolistic competition compared to perfect competition?
Price taker behavior
Identical products
Large number of firms
Product differentiation
#11
What does a kinked demand curve model in oligopoly suggest about the firm's reaction to price changes?
The firm matches price increases but ignores price decreases.
The firm matches both price increases and decreases.
The firm ignores both price increases and decreases.
The firm ignores price increases but matches price decreases.
#12
In a natural monopoly, what causes economies of scale?
High level of competition
Low barriers to entry
Large fixed costs and decreasing average costs
Small fixed costs and increasing average costs
#13
What factor contributes to the stability of a cartel in an oligopolistic market?
Low demand elasticity
High barriers to entry
Government regulation
Frequent changes in market demand
#14
What factor could lead to the dissolution of a natural monopoly?
Decreasing economies of scale
Increasing barriers to entry
Decreasing government regulation
Increasing average costs
#15
What factor could lead to the breakdown of collusion in an oligopoly?
High demand elasticity
Strong government enforcement
Decreasing market concentration
Frequent changes in market demand