#1
Which market structure is characterized by a large number of firms, similar but not identical products, and easy entry and exit?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#2
What is a characteristic of a monopoly market structure?
Many firms selling identical products
Single firm selling a unique product with high barriers to entry
Few firms selling differentiated products
Many firms selling similar but not identical products
#3
What is a key feature of perfect competition?
High barriers to entry
Identical products
Single seller dominating the market
Significant control over market price
#4
Which market structure exhibits the highest degree of market power?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#5
What is a defining characteristic of an oligopoly?
A large number of firms
A single seller dominating the market
A few interdependent firms
Identical products
#6
What does the term 'elastic demand' mean in microeconomics?
A small change in price leads to a large change in quantity demanded
A large change in price leads to a small change in quantity demanded
A change in price leads to no change in quantity demanded
Quantity demanded is not affected by price changes
#7
In oligopoly, firms tend to engage in strategic decision-making because:
There are many firms in the market
The products are identical
Each firm's actions affect the market price and its competitors' profits
The government regulates the market
#8
What happens to equilibrium price and quantity in a perfectly competitive market in the long run?
Price increases, quantity decreases
Price decreases, quantity increases
Price and quantity remain constant
Price and quantity adjust to achieve long-run equilibrium
#9
In which market structure do firms produce close substitutes and engage in non-price competition?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#10
What is the demand curve like for a monopoly firm?
Perfectly elastic
Perfectly inelastic
Downward sloping
Horizontal
#11
What is a characteristic feature of monopolistic competition?
A single firm dominates the market
There are only a few firms in the market
Products are identical
Products are similar but not identical, allowing firms to differentiate
#12
What is a characteristic feature of a duopoly?
Only one firm exists in the market
There are many firms selling similar products
There are two firms dominating the market
There are few firms with high barriers to entry
#13
What is a characteristic feature of a natural monopoly?
High barriers to entry
Multiple firms with similar products
A single firm can supply the entire market at the lowest cost
Firms have no control over price
#14
In a perfectly competitive market, how does the price compare to the marginal cost for each firm?
Price equals marginal cost
Price is greater than marginal cost
Price is less than marginal cost
Price equals average total cost
#15
In monopolistic competition, what happens in the long run as firms attempt to differentiate their products?
Price becomes equal to marginal cost
Economic profit attracts new firms, leading to a decrease in economic profit
Firms merge to reduce competition
Firms lower prices to undercut rivals