#1
Which market structure is characterized by a large number of sellers with differentiated products?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#2
In an oligopoly, firms tend to compete through?
Price competition
Non-price competition
Collusion
Perfect competition
#3
What is a characteristic of a perfectly competitive market?
High barriers to entry
Product differentiation
Price setting by individual firms
Many buyers and sellers
#4
What is a characteristic of a monopoly market structure?
Many firms selling identical products
Low barriers to entry
One firm dominating the market
Price taking behavior
#5
In a perfectly competitive market, what happens to economic profits in the long run?
Economic profits remain constant
Economic profits increase
Economic profits decrease
Economic profits tend to zero
#6
Which of the following is a characteristic of a monopoly?
Many sellers with identical products
Easy entry and exit of firms
High barriers to entry
Products are perfect substitutes
#7
What is a pricing strategy where a product is initially offered at a very low price to capture a large market share?
Penetration pricing
Price skimming
Bundle pricing
Cost-plus pricing
#8
Which market structure has the highest degree of control over the price of the product?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#9
What is a characteristic feature of monopolistic competition?
Identical products
High barriers to entry
Large number of sellers
Price taker
#10
What characteristic feature distinguishes monopolistic competition from perfect competition?
Homogeneous products
Few sellers
Product differentiation
Perfect information
#11
In which market structure do firms face a downward-sloping demand curve?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly
#12
In monopolistic competition, firms have a degree of market power due to?
Product differentiation
Homogeneous products
High barriers to entry
Perfect information