Question

1. which market structure is dominated by a few large firms?

a. monopoly
b. monopolistic competition
c. oligopoly
d. perfect competition
e. pure monopoly

1. a monopoly exists when

a. one firm controls the entire market
b. several firms sell identical goods
c. government owns all firms
d. buyers control price
e. there are no barriers to entry

1. which of the following industries best fits perfect competition?

a. car manufacturing
b. grain farming
c. airlines
d. utilities
e. fast food

1. in monopolistic competition, firms compete mainly through

a. government price control
b. mergers and collusion
c. product differentiation and advertising
d. cost regulation
e. wage agreements

1. an oligopoly is characterized by

a. no interdependence between firms
b. many sellers with identical products
c. mutual interdependence among a few large firms
d. price - taking behavior
e. government ownership

1. barriers to entry are highest in

a. perfect competition
b. monopolistic competition
c. monopoly
d. mixed market
e. open markets

1. which of the following is not an example of non - price competition?

a. advertising
b. packaging design
c. product quality
d. price discounting
e. celebrity endorsements

1. which statement about perfect competition is true?

a. firms have significant control over prices.
b. firms sell differentiated goods.
c. entry is very difficult.
d. all firms sell identical goods at market price.
e. there are few firms in the market.

1. which feature makes oligopolies different from monopolistic competition?

a. many small firms
b. few dominant firms
c. identical products
d. zero barriers to entry
e. government regulation only

1. in a monopoly, a firms market power is

a. none
b. shared equally
c. limited
d. complete
e. temporary

1. which market structure best fits the airline industry?

a. oligopoly
b. monopoly
c. perfect competition
d. monopolistic competition
e. duopoly

1. what gives monopolies their power?

a. low costs
b. high barriers to entry
c. perfect information
d. consumer choice
e. price regulation

Explanation:

1. Oligopoly is a market structure dominated by a few large firms.
2. A monopoly exists when one firm controls the entire market.
3. Grain farming has many small producers, identical products, and easy entry/exit, fitting perfect competition.
4. In monopolistic competition, firms compete via product differentiation and advertising.
5. Oligopoly is characterized by mutual interdependence among a few large firms.
6. Monopoly has the highest barriers to entry (e.g., patents, sole resource control).
7. Price discounting is price - based competition, not non - price.
8. In perfect competition, all firms sell identical goods at market price.
9. Oligopolies have few dominant firms, while monopolistic competition has many small firms.
10. In a monopoly, a firm has complete market power (it is the sole seller).
11. The airline industry has a few large firms (e.g., major carriers), fitting oligopoly.
12. High barriers to entry (e.g., large capital requirements for infrastructure) give monopolies power.

Answer:

1. C. Oligopoly
2. A. one firm controls the entire market
3. B. grain farming
4. C. product differentiation and advertising
5. C. mutual interdependence among a few large firms
6. C. monopoly
7. D. price discounting
8. D. All firms sell identical goods at market price
9. B. few dominant firms
10. D. complete
11. A. Oligopoly
12. B. High barriers to entry