Monopoly and Market Structures Quiz

Test your knowledge on industrial organization with questions about monopolies, oligopolies, and monopolistic competition. Learn about barriers to entry, pricing strategies, and market power.

#1

In a monopoly market structure, there is:

One seller and many buyers
Many sellers and many buyers
Many sellers and one buyer
Few sellers and many buyers
#2

What is a characteristic of a monopoly?

Low barriers to entry
Many substitutes available
Price taker
Single seller
#3

What is a characteristic of monopolistic competition?

Many sellers and one buyer
Identical products
Low product differentiation
Some control over price
#4

Which of the following is NOT a barrier to entry in a monopoly market?

Government license or franchise
High startup costs
Perfect information
Control over essential resources
#5

A natural monopoly arises when:

The market is perfectly competitive
There are no barriers to entry
One firm can produce at a lower cost than two or more firms
There is no government intervention
#6

Which market structure has the highest level of product differentiation?

Perfect competition
Monopoly
Monopolistic competition
Oligopoly
#7

In an oligopoly market structure, firms often engage in:

Price-taking behavior
Collusive agreements
Perfect competition
Unrestricted market entry
#8

Which market structure is characterized by a small number of interdependent firms?

Monopoly
Perfect competition
Oligopoly
Monopolistic competition
#9

In monopolistic competition, firms face a:

Horizontal demand curve
Vertical demand curve
Downward-sloping demand curve
Upward-sloping demand curve
#10

Price discrimination is more likely to occur in a monopoly market because:

There is only one seller
There is perfect competition
There are many substitutes available
There are no barriers to entry
#11

Which market structure has the highest barriers to entry?

Perfect competition
Oligopoly
Monopolistic competition
Monopoly
#12

A duopoly market structure involves:

One seller and many buyers
Two sellers and many buyers
Many sellers and one buyer
Many sellers and many buyers
#13

A cartel is a form of collusion often seen in which market structure?

Monopoly
Perfect competition
Oligopoly
Monopolistic competition
#14

Which market structure is most likely to result in allocative inefficiency?

Monopoly
Perfect competition
Oligopoly
Monopolistic competition
#15

Which market structure is characterized by the existence of economies of scale?

Perfect competition
Monopoly
Oligopoly
Monopolistic competition

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