Market Structures and Competition Quiz

Which best describes how the government sanctions technological monopolies? By creating the technology itself By prohibiting others from entering the market By issuing a patent for the technology By authorizing one producer

Who sets the price in a monopolistic competition? Producers and consumers Consumers only Government Producers only

_______________ is the term used to describe the amount of control or influence that consumers have on a market

Which aspect of monopolistic competition gives consumers more choice? Producers rely on consumer decisions to succeed Price is not an important factor Few barriers to market entry exam Producers are more concerned about selection than profits

Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication? Natural monopoly de facto Monopoly Government monopoly Technological monopoly

In pure competition, producers compete exclusively on the basis of Selling identical items Advertising heavily to promote their good Would you think that unique features of their good Focusing on maintaining a positive image

Which best describes how the government enables government monopolies to exist? By issuing a patent By allowing natural monopolies to exist By creating and running a monopoly By owning the means of production

The market for which item generally involves pure competition? Cola Corn Jeans Ice cream

In the United States,Which type of industry is often considered part of an oligopoly? Electric companies Cell phone carriers Mail delivery services Denim companies

If consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited? Consumers still rely on producers' set prices New products are actually sold on the basis of pure competition Choices are driven by price when goods are identical Limited price variations restrict actual choice