Market Structure

Which market structure involves selling identical products?

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly

Which market structure did John D. Rockefeller's Oil industry fall under?

• Monopoly

• Oligopoly

• Perfect Competition

• Monopolistic Competition

Markets like automobiles, cell phones, cable TV, and internet providers are examples of which market structure?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which is NOT a characteristic of a monopoly?

• Seller sets the market price
• Entry into the market is easy
• Firm sells a unique product
• One seller

Perfect competition involves:

• Sellers working together to set prices
• A large number of buyers & sellers
• Difficulty entering & exiting the market
• Little information is available to buyers

What were the three types of economies of scale mentioned in the text book?

• Oligopoly, Monopoly, & Perfect Competition

• Land, Labor, & Capital

• Purchasing, Specialization, & Technical

• Specialization, Barriers to Entry, & Technical

The town of Utopia has three gas stations. The owners of these gas stations make decisions together about when to raise and lower gas prices. It would be difficult for another gas station to enter this market. Which market structure best describes the market for gas in Utopia?

• Perfect competition
• Monopolistic competition
• Oligopoly
• Monopoly

List the four market structures in order from least competitive to most competitive.

• Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition
• Perfect Competition, Oligopoly, Monopoly, Monopolistic Competition
• Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition
• Monopoly, Monopolistic Competition, Perfect Competition, Oligopoly

If a major car company such as Ford lowers their prices, what are other car companies likely to do?

• Raise their prices
• Go out of business
• Maintain their current prices
• Lower their prices

Which of the following statements is true?

• Monopolistic competitors have an incentive to differentiate their products so customers have choices, but monopolies do not have this incentive.
• Monopolistic competitors & monopolies have the same amount of influence over the price of their products.
• Both oligopolies & industries with monopolistic competition involve a large number of sellers.
• All industries fit neatly into one type of market structure.