Market Structures Review

Which of the following are characteristics of a perfectly competitive market?

• identical products

• identical prices

• a few firms that sell most of the products

• consumers have no idea what the price is

• the companies advertise, A LOT!

Which of the following are characteristics of a monopolistically competitive market?

• identical products

• identical prices

• a few firms that sell most of the products

• consumers value quality

• many different prices

Which of the following are characteristics of an oligopolistic market?

• identical products

• identical prices

• a few firms that sell most of the products

• consumers value quality

• The companies advertise, A LOT

This industry should be described as which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

This industry should be described as which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

This industry should be described as which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

This industry should be described as which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

If an industry has 4 firms, but is very expensive for new firms to enter, it is probably which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

If an industry is relatively cheap for new firms to enter, but consumers care about quality differences it is probably which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition

If an industry is relatively cheap for new firms to enter, but consumers do not care about quality differences it is probably which market structure?

• perfect competition

• oligopoly

• monopoly

• monopolistic competition