#1
Which of the following is a characteristic of a monopoly market?
Many sellers
Perfect competition
Single seller
Homogeneous products
#2
Which of the following is a characteristic of a monopolistic competition market?
Single seller
Identical products
Many substitutes
Price taker
#3
What is a key characteristic of a perfectly competitive market?
Few sellers
Product differentiation
Price setting by individual firms
Many buyers and sellers
#4
What is the primary factor that differentiates monopolistic competition from perfect competition?
Number of sellers
Product differentiation
Barriers to entry
Homogeneous products
#5
What is a characteristic of a duopoly market structure?
Single seller
Two sellers
Many sellers
Perfect competition
#6
What is a barrier to entry in a monopoly market?
Many substitutes
Low production costs
Government regulation
Easy market access
#7
Which market structure allows a firm to have significant pricing power?
Monopoly
Perfect competition
Oligopoly
Monopolistic competition
#8
What is the main source of market power in an oligopoly?
Government regulations
Homogeneous products
Few large firms
Perfect competition
#9
Which of the following is a common strategy for a monopolist to maximize profit?
Setting price equal to marginal cost
Producing at the point where average total cost is lowest
Producing where marginal revenue equals marginal cost
Setting price equal to average variable cost
#10
In a monopoly, what is the elasticity of demand for the firm's product?
Perfectly elastic
Perfectly inelastic
Unitary elastic
Elastic or inelastic depending on the context
#11
What is a potential drawback of a monopoly for consumers?
Lower prices
Lack of product variety
Increased competition
More choices for consumers
#12
In a monopoly, the demand curve faced by the firm is:
Perfectly elastic
Perfectly inelastic
Downward-sloping
Upward-sloping
#13
What is a natural monopoly?
A monopoly that occurs without any government intervention
A monopoly that arises due to economies of scale
A monopoly formed through mergers and acquisitions
A monopoly controlled by foreign governments
#14
In a monopoly, what is the relationship between marginal revenue and price?
Equal
Marginal revenue is greater than price
Marginal revenue is less than price
No relationship
#15
What is a strategic behavior commonly observed in oligopoly markets?
Collusion
Perfect competition
Price taking
Homogeneous products
#16
What is a characteristic of a contestable market?
High entry barriers
Low exit barriers
No threat of new entry
Perfect competition
#17
Which market structure is characterized by a few interdependent firms?
Perfect competition
Oligopoly
Monopolistic competition
Monopoly