Market Structures Quiz

Which of the following is NOT a market structure on the Leaving Cert course?

• Monopoly

• Imperfect Competition

• Oligopoly

• Perfect Competition

What is the basis of differentiation between market structures?

• Price charged to the consumer

• The efficiency of their operations

• The number of firms in the industry

• The amount of Market Power enjoyed by each firm

Which assumption states that firms in a perfectly competitive market are price takers?

• There are a large numbers of both buyers and sellers in the market

• The product that each firm produces is homogenous

• There is full knowledge of both profits and prices

• There is freedom of entry and exit into and out of the industry

What determines the price that a price taker firm charges in a perfectly competitive market?

• The efficiency of the firm's operations

• The intersection of the Market Demand and Market Supply curves

• The firm's desire for profit

• The demand curve faced by the firm

What is the equilibrium position of a Perfectly Competitive Firm in the Short Run?

• The point where MC = MR and MC is rising

• The point where AC = AR and AC is falling

• The point where MC = MR and MC is falling

• The point where AC = AR and AC is rising

What happens to the market price when new firms enter the industry?

• The market price remains the same

• The market price increases

• The market price decreases

• The market price fluctuates

In the Long Run, what is the equilibrium position of a Perfectly Competitive Firm?

• MC = MR = AC = AR

• MC = MR = TC = AR

• MC = MR = AVC = AR

• MC = MR = AFC = AR

What is the supply curve for a Perfectly Competitive Firm based on?

• The quantity of a good or service that a firm is willing and able to consume at different prices

• The quantity of a good or service that a firm is willing and able to produce at different prices

• The quantity of a good or service that a firm is willing and able to sell at different prices

• The quantity of a good or service that a firm is willing and able to buy at different prices