Uni3MarketStructuresBusinessOrganizationsTestReview

The most competitive (no advantage for a business based purely on the product) market structure is

• perfect competition

• monopolistic competition

• monopoly

• oligopoly

Perfect competition is also referred to as ____ competition, because the seller has to compete based on things other than the product.

• transparent

• pure

• clear

• unlimited

All of the following are characteristics of perfect competition EXCEPT

• many buyers and sellers

• sellers offer identical products

• buyers and sellers are well informed about the products

• one firm dominates the market

As a result of many buyers and sellers in a perfectly competitive market

• One individual controls the market

• many buyers and sellers determine the market price of a product

• 2 individuals control the market

All of the following are products that could be considered perfectly competitive EXCEPT

• stocks traded on the New York Stock Exchange.

• Microsoft, Windows Operating System.

• commodities such as gold and wheat.

• agricultural products such as corn and tomatoes.

A product that is considered the same regardless of who makes it is called a

• commodity

• firm

• good

• service

All of the following would be considered a commodity EXCEPT

• onions

• wheat

• jeans

• tomatoes

Factors that make it difficult for new firms to enter a market are called

• hurdles to entry

• barriers to entry

• the market for defensive line

• perfect competition

A monopoly occurs when

• two sellers dominate a market and can effectively dictate price and quantity in the market.

• many sellers sell identical products.

• one seller dominates a market and can effectively dictate price and quantity in the market.

• many sellers sell similar products.

All of the following are examples of monopolies EXCEPT

• Microsoft Windows Operating System

• the NFL

• a local pizza place