Y10 Economics - C23 Market Structure

What does market structure refer to in economics?

• The number of customers in a market

• The key characteristics of a market

• The total revenue of firms

• The geographical location of firms

Which of the following is an example of a competitive market?

• Amazon in the e-commerce market

• Microsoft in the software market

• Wet markets for fresh food

• Apple in the smartphone market

In a competitive market, firms are considered to be:

• Market leaders

• Price takers

• Price makers

• Monopolists

What is a characteristic of monopoly markets?

• Single supplier

• High competition

• Low barriers to entry

• Many suppliers

What is a price maker?

• A firm that sells at a loss

• A firm that follows market prices

• A firm that sets its own price

• A firm that has no market power

Which of the following is a disadvantage of monopoly?

• Low barriers to entry

• Efficient resource allocation

• Demand is price inelastic

• High competition

What is one benefit of monopoly?

• Ability to invest in innovation

• Less market power

• Higher prices for consumers

• More competition

In a competitive market, how does the presence of many firms affect prices?

• Prices depend on demand and supply

• Prices tend to be higher

• Prices are set by a single firm

• Prices are fixed by the government

What is a barrier to entry?

• A way to improve product quality

• A strategy to lower prices

• Obstacles preventing firms from entering a market

• A method to increase competition

Which of the following describes imperfect knowledge in monopoly markets?

• Consumers have complete information

• Rivals have perfect knowledge

• Monopolists protect trade secrets

• All products are identical