F.4 Econ_Book 2 Chapter 13_I_20230228

All of the following are essential components of a market EXCEPT:

• competition between sellers

• buyers and sellers

• the product

• exchange

Which of the following are examples of non-price competition?

(1) A restaurant gives out leaflets outside an MTR station.

(2) A department store holds fashion shows on Sundays.

(3) A hair restorer (生髮水) manufacturer gives away free samples on the street.

(4) A health food manufacturer sponsors football games.

• (1) and (3) only

• (2) and (4) only

• (1), (3) and (4) only

• (1), (2), (3) and (4)

Which of the following are features of perfect competition?

(1) Free entry

(2) Heterogeneous products

(3) Perfect information

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Which of the following is NOT a type of market structure?

• Monopoly

• Monopolistic Competition

• Oligopoly

• Imperfect competition

In a perfectly competitive market,

• no firms are private limited companies.

• a firm can increase profits by advertising.

• the products are homogeneous.

• there can be two market prices.

The market structure of the fast food industry in Hong Kong ____________ perfect competition because ____________.

• is … it is inexpensive to set up a fast food restaurant

• is … it is inexpensive to set up a fast food restaurant

• is not … restaurant owners clearly know the quality of their food

• is not … food sold at different fast food restaurants is not identical to consumers

Which of the following is a feature of perfect competition?

• There is non-price competition.

• Individual sellers have no influence on the market price.

• Sellers supply heterogeneous products.

• Some sellers may associate with one another to increase their ability to influence the market.

A market can be regarded as monopolistic competition when

• the products sold are homogeneous.

• there is no monopolist in the market.

• there is non-price competition.

• there are many small sellers who sell heterogeneous products, with no dominant sellers.

Firms under monopolistic competition

• sell homogeneous products.

• engage in price competition.

• earn a lower profit than oligopolists.

• are price takers.

Which of the following is NOT a common feature of perfect competition and monopolistic competition?

• Sellers can easily enter the market.

• Sellers have perfect market information.

• There are a large number of sellers.

• Competition prevails.