Chapter 4 Test - Market Structures and Competition - Master

Allows large firms to buy in bulk at a lower price

• Economies of scale
• Market Power
• Monopoly
• Patent

Gives a company the right to sell its invention without competition

• Economies of scale
• Market Power
• Monopoly
• Patent

Single seller market allowed by the government such as FPL

• Economies of scale
• Market Power
• Government Monopoly
• Price discrimination

Why is a discounted airline ticket a form of price discrimination?

• People do not always use discounts
• Travelers in the same class pay different rates based on their demand
• Business travelers always get big discounts
• All travelers get a discount

Which of these local businesses has the advantage of economies of scale?

• Anna's Pizza

• The Whistle Stop

• Subway Franchisee

• Rinaldi's

Secret agreement among firms to sell at the same or similar prices

• Cartel
• Collusion
• Monopolistic Competition
• Oligopoly

Enterprise Car Rentals offers to pick you up and drop you off at home when you rent a car from them. How do this separate their company from other care rental companies?

• Physical features

• Service level

• Advertising

• Location

The main difference between monopolistic competition and perfect competition is that

• In perfect competition prices are set by the government
• In Perfect competition the buyer is fee to buy from any seller
• In monopolistic competition there are fewer sellers and more buyers
• In monopolistic competition sellers completely control price

If there are many firms in an industry producing goods that are similar but slightly different, this is an example of

• Perfect competition.

• Monopolistic competition.

• Oligopoly.

• Monopoly.

Product differentiation refers to

• Features that make one product appear different from competing products in the same market.

• Different prices for the same product in a certain market.

• The selling of identical products in different markets.

• The charging of different prices for the same product in different markets.