#1
Which market structure is characterized by many firms selling identical products?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
#2
What is a characteristic of a monopoly market?
Many firms selling identical products
Low barriers to entry
Only one firm dominating the market
Perfect information available to all firms
#3
What is a characteristic of perfect competition regarding product differentiation?
Products are identical
Products are highly differentiated
Products have moderate differentiation
Products have minimal differentiation
#4
Which market structure is characterized by a few large firms dominating the market?
Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
#5
In a perfectly competitive market, what is the relationship between price and marginal cost for a firm in the short run?
Price equals marginal cost
Price is greater than marginal cost
Price is less than marginal cost
Price has no relationship with marginal cost
#6
In a perfectly competitive market, what happens to a firm's demand curve?
It is downward sloping
It is perfectly elastic
It is upward sloping
It is perfectly inelastic
#7
What is a characteristic feature of monopolistic competition?
Many firms selling identical products
High barriers to entry
Product differentiation
Only one firm dominating the market
#8
In a perfectly competitive market, what is the relationship between price and marginal revenue?
Price equals marginal revenue
Price is greater than marginal revenue
Price is less than marginal revenue
Price has no relationship with marginal revenue
#9
Which market structure has the highest level of barriers to entry?
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
#10
Which market structure is most likely to result in allocative efficiency?
Oligopoly
Perfect Competition
Monopoly
Monopolistic Competition
#11
What is a characteristic of a monopolistically competitive market?
Many firms selling identical products
Low barriers to entry
Product differentiation
Price is set by a central authority
#12
In a monopolistic competition, what happens to a firm's demand curve in the long run?
It becomes perfectly elastic
It becomes perfectly inelastic
It becomes more elastic
It becomes more inelastic
#13
Which market structure typically leads to the highest level of consumer surplus?
Perfect Competition
Monopoly
Oligopoly
Monopolistic Competition
#14
What is a key characteristic of an oligopoly?
A large number of firms selling identical products
One firm dominating the market
Mutual interdependence among firms
No barriers to entry
#15
What is the term for a situation where one firm can control the market price?
Price competition
Monopolistic competition
Price discrimination
Price leadership
#16
Which market structure often results in economies of scale and scope?
Monopoly
Perfect Competition
Oligopoly
Monopolistic Competition
#17
In which market structure do firms engage in non-price competition?
Oligopoly
Perfect Competition
Monopoly
Monopolistic Competition
#18
Which market structure is most likely to lead to productive inefficiency?
Monopoly
Perfect Competition
Oligopoly
Monopolistic Competition
#19
What is a characteristic of a perfectly competitive market regarding entry and exit?
High barriers to entry and exit
Low barriers to entry and exit
Only one firm is allowed to enter or exit
Entry and exit are restricted by government regulations