Question :
14.5 Summing Up: Four Market Structures
1) Which of the following : 1377542
14.5 Summing Up: Four Market Structures
1) Which of the following is a difference between a perfectly competitive market and a monopoly?
A) There are huge barriers to entry in a perfectly competitive market while there are no barriers to entry in a monopoly.
B) The sellers in a perfectly competitive market are price-makers while a seller in a monopoly market is a price-taker.
C) The equilibrium price in a perfectly competitive market exceeds marginal revenue while equilibrium price in a monopoly equals marginal revenue.
D) The market demand curve faced by a perfectly competitive firm is horizontal while the market demand curve in a monopoly is downward-sloping.
2) Which of the following markets has a single firm?
A) Perfect competition
B) Monopolistic competition
C) Monopoly
D) Oligopoly
3) Which of the following markets is likely to be a monopoly?
A) The market for patented nuclear medicines
B) The market for wheat
C) The market for smart phones
D) The market for shower gel
4) Which of the following markets is likely to be perfectly competitive?
A) The market for patented nuclear medicines
B) The market for wheat
C) The market for smart phones
D) The market for shower gel
5) The market for apples is an example of ________.
A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly
6) A wholesale flower market is an example of ________.
A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly
7) There are a few ship manufacturers in Polonia and each firm faces a downward sloping demand curve. The ship-building industry in Polonia is an example of a(n) ________.
A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly
8) A large number of firms in Richland sell energy drinks. However, each firm faces a downward sloping demand curve. The market for energy drinks in Richland is an example of a(n) ________.
A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly
9) The market for high-end cars is likely to be a(n) ________.
A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly
10) Social surplus is maximized in a(n) ________.
A) perfectly competitive market
B) monopolistically competitive market
C) monopoly market
D) oligopoly market
11) In which of the four market structures do sellers act as price-takers?
A) Perfect competition
B) Monopolistic competition
C) Monopoly
D) Oligopoly
12) Which of the following is a similarity between a monopoly and an oligopoly with differentiated products?
A) There are no barriers to entry in both markets.
B) The long-run equilibrium price in both markets exceeds marginal cost.
C) There is a single seller in both the markets.
D) Firms in both the markets earn zero profit in the long run.
13) Which of the following is true?
A) Firms in all the four market structures earn zero economic profits in the long run.
B) Firms in perfectly competitive market earn zero economic profits in the long run.
C) Firms in a monopolistically competitive market earn zero economic profit in the long run.
D) Firms in an oligopoly market earn equal profits in the long run.
14) Differentiate between the four market structures on the basis of the type of products sold.
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