Market Structures Quiz

A company joins another company or companies to form a single firm.

• monopoly

• cartel

• merger

• franchise

A formal organization of producers that agree to coordinate prices and production.

• cartel

• oligopoly

• conglomerate

• monopolistic competition

Selling the market price below cost in the short term to drive competitors out of business.

• price fixing

• predatory pricing

• price war

• price discrimination

Government policies that keep firms from controlling the price and supply of important goods.

• mergers

• economies of scale

• deregulation

• antitrust laws

A single seller has the rights to sell goods in an exclusive market.

• franchise

• patent

• license

• monopoly

An agreement among firms to sell at the same or very similar prices.

• price war

• price fixing

• price discrimination

• predatory pricing

A market structure dominated by a few large, profitable firms.

• monopolistic competition

• monopoly

• perfect competition

• oligopoly

A market with many well-informed buyers and sellers, identical products, and free entry and exit.

• monopolistic competition

• monopoly

• oligopoly

• perfect competition

A natural monopoly is:

• any situation in which only a single seller is allowed to exist

• a monopoly in which the goods produced are agricultural resources

• an industry that runs best when one firm produces all the output

• an industry in which the government provides all the output

A discounted airline fare is a price discrimination that can be offered because:

• people do not necessarily want to go when the discounts will allow them to go

• parents benefit from kids fly free discounts when those without kids do not.

• people who fly on business want the price discounts but do not qualify

• senior citizens qualify for discounts on certain types of flights but not on others