#1
Which of the following is a characteristic of perfect competition?
Many sellers and many buyers
ExplanationPerfect competition entails numerous buyers and sellers engaging in homogeneous goods.
#2
In which market structure does a single firm dominate the entire market?
Monopoly
ExplanationA monopoly structure involves a single firm controlling the entire market.
#3
What is a characteristic of monopolistic competition?
Product differentiation
ExplanationMonopolistic competition is characterized by firms differentiating their products.
#4
What is a natural monopoly?
A monopoly arising due to economies of scale
ExplanationA natural monopoly emerges because of the efficiency achieved through economies of scale.
#5
What is price discrimination in monopoly?
Setting different prices for different customers based on their willingness to pay
ExplanationPrice discrimination involves charging varied prices to customers based on their willingness to pay.
#6
What is the goal of a monopolist in price discrimination?
To charge different prices to different customers
ExplanationThe aim of price discrimination for a monopolist is to charge varying prices to customers.