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Chapter 7 Market Structures Flashcards | StudBud
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Chapter 7 Market Structures
Chapter 7 Market Structures
22 terms
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StudBud Administration
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review for market structure assessment
Flashcards
22 cards
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Questions
22
Answers
1
This picture is an example of what type of market structure?
monopolistic competition
oligopoly
monopoly
perfect competition
2
A major characteristic of monopolistic competition is that prices will be:
lower than in perfect competition
higher than in a monopoly
higher than in perfect competition
unrelated to competition
3
Which of the following is considered a commodity?
jeans
soda
cereal
milk
4
Which of the following would be an oligopoly:
1 firm producing 95% of the output
2 to 4 firms producing 70 to 80% of the output
12 to 14 firms producing 90% of the output
8 to 10 firms producing 60-70% of the output
5
A single seller in a market is a(n)
monopoly
oligopoly
monopolistic competition
perfect competition
6
Foreclosure occurs when someone fails to pay...
the title
the bookie
the mortgage
the teacher
7
One way that firms in a monopolistic competition engage in nonprice competition is through:
fixed costs
advertising
variable costs
production
8
A market with many buyers and sellers, identical products, and free entry and exit is a(n)
perfect competition
monopolistic competition
monopoly
oligopoly
9
These make it difficult for new firms to enter a market
antitrust laws
collusion
cartel
barriers to entry
10
Laissez-Faire is telling the government...
more police protection
give us more benefits
leave us alone
build more schools
11
A way to attract customers without lowering prices is
collusion
cartel
barriers to entry
nonprice competition
12
Can an entire market fail?
no
not in the USA
yes
13
How does the price in a monopoly compare with the price of the same good in perfect competion?
the price is lower
the prices cannot be compared
the price is higher
the prices are the same
14
What is one thing the government can do to keep monopolies from forming?
ban predatory pricing
block sales
encourage mergers
block mergers
15
Which of these is NOT a positive externality?
increased business
pollution
improved land values
public pride
16
This type of business sells shares of stock to raise money:
limited partnership
general partnership
sole proprietorship
corporation
17
A market structure with many companies selling similar products is a(n)
monopolistic competition
perfect competition
monopoly
oligopoly
18
If a market has low competition, usually start-up costs are:
high
low
19
A market structure with a few large firms is a(n)
oligopoly
perfect competition
monopoly
monopolistic competition
20
Do companies in a perfectly competive market have much control over prices?
yes
no
21
An example of a public good would be...
factories
roads
fast food restaurants
computers
22
An agreement among members of an oligopoly to illegally set prices and production levels is a
cartel
collusion
