Market Structures and Monopoly Characteristics Quiz
Explore characteristics of perfect competition, monopoly, monopolistic competition, and oligopoly. Test your knowledge now!
#1
Which of the following is a characteristic of perfect competition?
Many sellers and many buyers
Single seller dominating the market
Barriers to entry for new firms
Product differentiation
#2
In which market structure does a single firm dominate the entire market?
Perfect competition
Monopoly
Oligopoly
Monopolistic competition
#3
What is a characteristic of monopolistic competition?
Identical products
Many buyers and many sellers
Price taker
Product differentiation
#4
What is a natural monopoly?
A monopoly formed through mergers and acquisitions
A monopoly protected by government regulations
A monopoly arising due to economies of scale
A monopoly based on patents and copyrights
#5
What is price discrimination in monopoly?
Setting different prices for different customers based on their willingness to pay
Colluding with other firms to fix prices
Forcing buyers to pay higher prices
Selling products at a loss to eliminate competitors
#6
What is the goal of a monopolist in price discrimination?
To maximize consumer surplus
To charge different prices to different customers
To minimize total revenue
To set a single price for all customers
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