#1
Which of the following is an example of a company with monopolistic market dominance?
Microsoft
ExplanationMicrosoft exemplifies monopolistic market dominance.
#2
What type of market dominance occurs when a single seller controls the entire market supply of a product or service?
Monopoly
ExplanationMonopoly arises when a single seller monopolizes market supply.
#3
In which type of market dominance do numerous firms compete against each other, each having a small market share?
Monopolistic competition
ExplanationMonopolistic competition involves firms competing with small market shares.
#4
What is a characteristic of a monopolistic competition market?
Product differentiation
ExplanationProduct differentiation is a characteristic of monopolistic competition.
#5
What term describes a market where a few large firms dominate the industry?
Oligopoly
ExplanationOligopoly characterizes a market dominated by a few large firms.
#6
What strategy might a company use to maintain its dominance in an oligopoly market?
Collusion
ExplanationCollusion helps firms maintain dominance in an oligopoly market.
#7
Which of the following is a strategy used by firms in monopolistic competition to gain market dominance?
Price discrimination
ExplanationPrice discrimination is a strategy in monopolistic competition.
#8
What characteristic distinguishes an oligopoly market from other types of market dominance?
Few sellers dominating the market
ExplanationOligopoly is distinguished by few sellers dominating the market.
#9
Which of the following is an example of natural monopolies?
Electricity distribution
ExplanationElectricity distribution exemplifies natural monopolies.
#10
Which of the following is a barrier to entry commonly associated with oligopoly markets?
Economies of scale
ExplanationEconomies of scale are a common barrier to entry in oligopoly markets.
#11
What type of market dominance may result in the most efficient allocation of resources?
Perfect competition
ExplanationPerfect competition leads to the most efficient resource allocation.
#12
Which of the following is a characteristic of an oligopoly market?
Few firms dominate the market
ExplanationAn oligopoly market is characterized by a few dominating firms.