lecture for the demo class

Which of the following is a characteristic of a perfectly competitive market?

• • A) Single seller

• • B) Homogeneous products

• • C) High barriers to entry

• • D) Price maker

In a monopoly, the firm is a:

• • A) Price taker

• • B) Price maker

• • C) Price follower

• • D) Price negotiator

Which of the following is an example of a monopoly?

• • A) Wheat farming

• • B) Utility company

• • C) Coffee shop

• • D) Clothing brand

What type of market structure has many firms selling identical products?

• • A) Monopoly

• • B) Oligopoly

• • C) Monopolistic competition

• • D) Perfect competition

Which of the following is NOT a characteristic of monopolistic competition?

• • A) Many sellers

• • B) Product differentiation

• • C) High barriers to entry

• • D) Some control over prices

In a perfectly competitive market, firms earn what kind of profit in the long run?

• Negative profit

• • Positive profit

• • Zero economic profit

• Supernormal profit

Which market structure is most likely to result in the highest prices for consumers?

• • Perfect competition

• • Monopolistic competition

• • Oligopoly

• Monopoly

Which of the following is true in a monopoly?

• • A) Firms produce identical products

• • B) The firm sets the price by controlling the supply

• • C) There are many firms in the market

• • D) Firms have no control over prices

What happens to the market price in a perfectly competitive market if a single firm increases its price?

• • A) The market price increases

• • B) The market price decreases

• • C) The firm loses all its customers

• • D) The firm gains more customers

How was the lecture? ;-)

• It was great.

• I loved it.

• I really enjoyed it.

• It was very good.