Pretest:

In a perfectly competitive market, which of the following is true?

• There are no barriers to entry

• There are many firms, each with a small market share

• Products are homogeneous and there is no product differentiation

• All of the above

In an oligopoly market, which of the following is true?

• There are many firms, each with a small market share

• Products are differentiated, and there is some product diversity

• There are only a few firms, each with a significant market share

• All of the above

In a monopolistically competitive market, which of the following is true?

• There is only one firm in the market

• There are many firms, each with a small market share

• Products are homogeneous and there is no product differentiation

• Products are differentiated, and there is some product diversity

Which of the following is a characteristic of a monopoly market?

• High level of competition

• Homogeneous products

• Low barriers to entry

• One firm has exclusive control over the supply of a product or service

In a perfectly competitive market, which of the following is a likely outcome?

• High prices due to limited competition

• Low prices due to intense competition

• Limited product differentiation

• One firm has exclusive control over the supply of a product or service