#1
In microeconomics, what does the term 'perfect competition' refer to?
A market with many buyers but only one seller
A market with few buyers and many sellers
A market with identical products and many buyers and sellers
A market with unique products and one dominant seller
#2
Which of the following is NOT a characteristic of perfect competition?
Free entry and exit of firms
Product differentiation
Perfect information
Homogeneous products
#3
What is the main characteristic of a perfectly competitive market regarding price?
Firms can set their own prices
Price is determined by market demand and supply
Price is set by government regulations
Price is determined by individual firm's cost
#4
Which of the following is an example of a barrier to entry in a market?
High level of competition
Low initial capital requirements
Government regulation favoring new entrants
Patents and licenses
#5
What is the primary goal of firms operating in a perfectly competitive market?
Maximizing revenue
Maximizing profit
Maximizing market share
Minimizing costs
#6
Which of the following is NOT a characteristic of monopolistic competition?
Product differentiation
Many sellers
Price taking behavior
Some control over price
#7
What is a monopoly in microeconomics?
A market with only one buyer and many sellers
A market with only one seller and many buyers
A market with many sellers but only one buyer
A market with few buyers and few sellers
#8
Which of the following is a characteristic of monopolistic competition?
Identical products
Many sellers and many buyers
Price taker behavior
Significant product differentiation
#9
What is a cartel in microeconomics?
A group of consumers forming an alliance to influence prices
A group of firms that collude to restrict output and increase prices
A government agency regulating market competition
A type of market structure with many small firms
#10
Which of the following is an example of a non-price competition strategy?
Discounts and sales promotions
Lowering production costs
Increasing advertising expenditure
Raising product prices
#11
What is an example of a natural monopoly?
Internet service provider
Fast food restaurant
Car manufacturing company
Consulting firm
#12
What is the main characteristic of an oligopoly market structure?
Many buyers and one seller
One buyer and many sellers
Few buyers and many sellers
Few sellers and interdependence among them
#13
What is an oligopoly in microeconomics?
A market with a single seller dominating
A market with a few sellers dominating
A market with a single buyer dominating
A market with many sellers but only one buyer
#14
What is the concept of 'price discrimination' in microeconomics?
Selling identical products at different prices to different buyers
Setting prices based on marginal cost
Collaborating with competitors to fix prices
Refusing to sell to certain customers
#15
What is the concept of 'creative destruction' in microeconomics?
The introduction of new technology leading to the obsolescence of existing products
The ability of monopolies to dominate markets without competition
The process of establishing barriers to entry to prevent competition
The government's intervention to break up monopolies
#16
What is the main characteristic of a duopoly market structure?
Many sellers and many buyers
Few sellers and one buyer
Few sellers and interdependence among them
Many buyers and one seller
#17
What is a characteristic of a monopolist?
Many competitors offering similar products
Price taking behavior
Unique product with no close substitutes
Highly competitive market