AppEcon Lesson 6

What is a characteristic of perfect competition?

• Only one seller controls the market.

• Many sellers offer the same product.

• A few big companies dominate the market.

• Sellers offer slightly different products.

Which of the following is an example of a monopoly?

• Vendors selling bananas

• Meralco (electricity supplier)

• Milk tea shops

• Globe, Smart, and DITO in telecom

In an oligopoly, what is the market structure like?

• Many sellers, same product

• Only one seller controls everything

• A few big companies dominate

• Many sellers with slightly different products

Which market structure is characterized by many sellers with slightly different products?

• Perfect Competition

• Monopoly

• Oligopoly

• Monopolistic Competition

What is a challenge for entrepreneurs in a monopoly market?

• Prices stay low

• Hard to compete; follow pricing

• Need big money to join

• Success from uniqueness

How do high interest rates affect entrepreneurs?

• Loans are cheaper

• Loans are more expensive

• Easier to start businesses

• No effect on business growth

What is a major business expense related to location?

• Interest rates

• Taxes

• Rentals

• Minimum wage

Why is paying taxes important for entrepreneurs?

• It increases profit

• It is part of being a responsible business owner

• It reduces business expenses

• It is optional for small businesses

What is a benefit of low interest rates for entrepreneurs?

• Loans are more expensive

• Harder to start businesses

• Easier to start and grow businesses

• No effect on business growth

What is a potential downside of high rent for businesses?

• Increased profit

• Less profit

• Easier to find a location

• No impact on expenses