Understanding Market Structures Quiz

Which of the following is a common effect of a monopoly on the market?

• Increased competition

• Higher prices for consumers

• More product variety

• Lower barriers to entry

Which characteristic is typical of an oligopoly?

• Many small firms

• No barriers to entry

• Few dominant firms

• Homogeneous products

What is a significant barrier to entry in a monopolistic market?

• Low startup costs

• High competition

• Government regulations

• Easy access to resources

Which of the following is an example of perfect competition?

• The smartphone industry

• The wheat market

• The airline industry

• The automobile industry

In a monopolistic competition scenario, firms compete primarily on:

• Price only

• Product differentiation

• Government subsidies

• Market share

Which market structure is characterized by a single seller?

• Oligopoly

• Perfect competition

• Monopoly

• Monopolistic competition

Which of the following is an example of a monopoly?

• Local water utility company

• Fast food restaurants

• Clothing retailers

• Online streaming services

Which of the following is a characteristic of perfect competition?

• Few sellers

• Differentiated products

• Price takers

• High barriers to entry

Which of the following is an example of an oligopoly?

• The airline industry

• The local bakery market

• The agricultural sector

• The public transportation system

In a monopolistic competition, what is a common strategy for firms to gain market share?

• Lowering prices below cost

• Merging with competitors

• Product innovation and advertising

• Lobbying for government protection