Market Structure Quiz

Which of the following factors does not affect market structure?

• Quantity of producers

• Product similarity

• Weather conditions

• Ease of entry

What happens when more producers enter a market?

• Competition decreases

• Prices increase

• Competition increases

• Product quality decreases

In which market structure are products nearly identical and producers have no control over pricing?

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

What term refers to goods that are produced in the same way regardless of the producer?

• Brand goods

• Differentiated products

• Commodities

• Oligopolies

What is a key characteristic of a monopoly?

• Many competitors

• Identical products

• One producer with complete market power

• Easy entry for new companies

A monopoly that exists because one company controls a natural resource is known as a:

• Government-Created Monopoly

• Natural Monopoly

• Resource Monopoly

• Utility Monopoly

In an oligopoly, how are prices typically influenced?

• Determined by government

• Based entirely on consumer demand

• Set randomly by each company

• Influenced by decisions of competing businesses

What is collusion in an oligopoly?

• When a company sets prices alone

• When businesses work together to agree on prices

• When prices drop rapidly

• When the government sets pricing

In which market structure do companies rely on nonprice competition such as brand image or service?

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

Which of the following is not a form of nonprice competition?

• Status and image

• Physical characteristics

• Raising prices

• Customer service