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Social Studies
9th -
University
Econ: Monopolistic Competition and Oligopoly
20 questions
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- 1. Multiple Choice
If the entire output of a market is produced by a SINGLE seller, the firm:
Is a monopoly.
Is producing a new product.
- 2. Multiple Choice
A barrier to entry is
An obstacle that makes it difficult for new firms to enter a market.
A commitment on the part of big business to allow smaller companies to compete.
An obstacle that prevents additional workers from entering an industry, such as a union.
- 3. Multiple Choice
If there are many firms in an industry producing goods that are similar but slightly different, this is an example of
Monopoly
Monopolistic competition.
- 4. Multiple Choice
Product differentiation refers to
Features that make one product appear different from competing products in the same market.
The selling of identical products in different markets.
- 5. Multiple Choice
Which of the following usually results from colluding firms?
Less is produced
Profit decreases
Prices are higher
- 6. Multiple ChoiceThe characteristic of oligopolistic firms that makes them different from all other types of firms is that oligopolistic firms:Advertise their productsConsider each other's decisionsProduce differentiated productsFace high barriers to entry
- 7. Multiple ChoiceFirms in monopolistic competition can leave the market easily in the long run.TrueFalse
- 8. Multiple ChoiceAn oligopoly is a market dominated by just a few firms.TrueFalse
- 9. Multiple ChoiceHow many firms are in a monopoly?onetwothreeunlimited
- 10. Multiple ChoiceA market structure in which a few large firms dominate a marketPerfect CompetitionMonopolistic CompetitionOligopoly
- 11. Multiple Choice
Going to the Dallas Farmers Market to buy apples, you will find this type of market structure.
Monopoly
Perfect Competition
Monopolistic Competition
Oligopoly
- 12. Multiple Choice
Since the airline industry is controlled by only a few very big companies, which type of market structure would best describe it.
Monopoly
Perfect Competition
Oligopoly
- 13. Multiple Choice
The above image is an example of...
Pure Competition
Monopolistic Competition
Oligopoly
Non-Price Competition
- 14. Multiple Choice
DeBeers used to be the only supplier of diamonds. Which terms best describes this firm?
Merger
Monopolistic Competition
Monopoly
Oligopoly
- 15. Multiple ChoiceA price war occurs when competing sellers________ their prices _____________________.drop, below the competitiondrop, above the competitionraise, below the competitionraise, below the competition
- 16. Multiple Choice
Define collusion
When two cars collide on the road
a secret agreement between two competing firms to sell their similar products at the same price
- 17. Multiple Choice
______________ occurs when you sell the same product for different prices to different people.
Price discrimination
Bargaining
- 18. Multiple Choice___________ is an agreement among competing businesses to sell products for the same or similar prices.Price fixingPrice gougingPrice warsPrice discrimination
- 19. Multiple ChoiceThe jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)monopolyoligopolyperfect competitionmonopolistic competition
- 20. Multiple ChoiceWhen a major car company lowers its prices, other car makers will probablymaintain existing prices.raise their prices.go out of business.lower their prices.
- Answer choicesTagsAnswer choicesTags