#1
Which market structure is characterized by a large number of small firms, identical products, and ease of entry and exit?
Perfect competition
ExplanationMany small firms offer identical products with easy entry and exit.
#2
In which market structure do a few large firms dominate the market?
Oligopoly
ExplanationA few large firms dominate the market.
#3
Which market structure features a single seller with no close substitutes?
Monopoly
ExplanationThere is only one seller with no substitutes.
#4
In which market structure do firms engage in strategic behavior and non-price competition?
Monopolistic competition
ExplanationFirms differentiate products and compete through means other than price.
#5
Which of the following is a characteristic of monopolistic competition?
Many firms
ExplanationThere are many firms in the market.
#6
What is a characteristic of a monopoly market structure?
Price maker
ExplanationMonopolies have the power to set prices.
#7
What is a characteristic of an oligopoly market structure?
Interdependence among firms
ExplanationFirms' actions are influenced by the actions of their competitors.
#8
What is a barrier to entry in a monopoly market?
High startup costs
ExplanationThe high costs of entry prevent new competitors.
#9
In a perfectly competitive market, firms are price takers. What does this mean?
They must accept the market price as given
ExplanationFirms have no control over the price and must accept it.
#10
In a monopolistically competitive market, firms have some degree of market power. What does this mean?
They can influence prices but not as much as monopolies
ExplanationFirms can sway prices but to a lesser extent than monopolies.
#11
Which market structure has the least control over price?
Perfect competition
ExplanationFirms have no control over prices.