Market Structures Quiz

firms produce and sell identical products · firms have a relatively small market share · consumers are aware of the products and their prices · there are few barriers to entry into the market

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which market structure has the largest number of suppliers?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Worldwide, Coca-Cola and PepsiCola dominate the soft-drink market, selling significantly more beverage products than any other producers. This domination by only two producers is BEST described as a(n)

• Monopoly

• Oligopoly

• Open market

• Pure competition

Which type of market typically produces the highest level of output at the lowest price to consumers?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

A utility (such as a power company) which controls all services in a designated area is called a

• Trust

• Cartel

• Monopoly

• Devised oligopoly

Which markets compete in non-price competition?

• Oligopoly and perfect competition

• Monopoly and monopolistic competition

• Monopolistic competition and oligopoly

• Perfect competition and monopolistic competition

Which market(s) has no competition?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

For an industry to be perfectly competitive, what must exist?

• there are no competitive markets

• many firms selling identical items

• many firms selling different items

• many consumers wanting different items

Which type of business organization has the advantage of specialization, but the disadvantage of unlimited liability?

• Oligopoly

• Corporation

• S-corporation

• Partnership

Which BEST describes the decision-making process for a corporate business organization?

• The shareholders run the day to day operations of the business, making all decisions.

• The partners of the firm make decisions jointly, as laid out in the articles of partnership.

• Shareholders elect the Board of Directors, who then hire the managing officers of the company, such as the CEO.

• The CFO hires a board of governors to oversee the structure of the corporation, and mid-level managers to run the day to day operations.