Understanding Market Structures and Competition

Which of the following is a characteristic of perfect competition?

• High barriers to entry

• Homogeneous products

• Few sellers

• Price makers

In which market structure are firms considered price takers?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which of the following is NOT a type of market structure?

• Monopoly

• Oligopoly

• Perfect competition

• Duopoly

What is a key feature of a monopoly?

• Many sellers

• Unique product

• Free entry and exit

• Perfect information

In perfect competition, what is the relationship between the price and marginal cost at equilibrium?

• Price is greater than marginal cost

• Price is less than marginal cost

• Price equals marginal cost

• Price is unrelated to marginal cost

Which market structure is characterised by a few large firms dominating the market?

• Perfect competition

• Oligopoly

• Monopoly

• Monopolistic competition

In which market structure do firms have no control over the market price?

• Monopoly

• Oligopoly

• Perfect competition

• Monopolistic competition

Which of the following is a characteristic of monopolistic competition?

• Homogeneous products

• Few sellers

• Product differentiation

• High barriers to entry

What is the main reason for the existence of a monopoly?

• Many competitors

• High barriers to entry

• Perfect information

• Homogeneous products

In perfect competition, what happens to economic profits in the long run?

• They increase

• They decrease

• They become zero

• They fluctuate