Market Structures Practice

What is a market structure?

• The organization of a market based on the number of firms in the market and the ways they compete.

• The physical location of a market.

• The financial status of a market.

• The legal regulations governing a market.

In a perfect competition market structure, firms are price ______.

• Makers

• Takers

• Regulators

• Controllers

A market for a good or service is influenced by ______.

• government policies

• consumer preferences

• technological advancements

• all of the above

The market for laptops is similar to the market for tomatoes because both ______.

• are affected by supply and demand

• have the same production process

• are sold in the same stores

• have identical pricing

A competitive market is characterized by ______.

• a single seller

• multiple buyers and sellers

• fixed prices

• no innovation

Consumers have easy access to information in a perfectly competitive market, such as ________.

• Comparing prices

• Secret deals

• Limited offers

• Exclusive memberships.

What is monopolistic competition?

• A market structure with a single seller

• A competitive market structure where the product is differentiated but there are many sellers

• A market structure with no competition

• A market structure with identical products.

What is one characteristic of monopolistic competition?

• Single producer

• Few barriers to entry

• Identical products

• No control over price.

Which of the following industries is an example of an oligopoly? A) Cell phone service providers B) Local grocery stores C) Independent bookstores D) Farmers' markets.

• Cell phone service providers

• Local grocery stores

• Independent bookstores

• Farmers' markets

High barriers to entry in an oligopoly are due to ___.

• High startup costs

• Low demand

• Government subsidies

• Technological advancements.