Question

part a circle the letter of the answer that correctly completes each sentence.

1. a secret agreement between competing businesses to cooperate to control the market is called _.

a trust b warranty c price war d collusion

1. a _ is a market in which there is no competition.

a oligopoly b buyers market c monopoly d open market

1. a _ gives sole ownership of an invention to the inventor.

a patent b merger c copyright d warranty

1. a monopoly that is allowed to exist because competition is not needed is called a _ monopoly.

a competitive b natural c mixed d pure

1. one feature of an oligopoly is that there are few _.

a buyers b patents c sellers d markets
part b match the words in column 1 with their meanings in column 2. write the letter on the line.
column 1 column 2
_ 6. customer services a. people who want to make things better
_ 7. monopolies b. extras offered to attract customers
_ 8. reformers c. industries that are often natural monopolies
_ 9. price discrimination d. made illegal by the sherman antitrust act
_ 10. merger e. sellers charge different buyers different prices for the same product
_ 11. pure competition f. farming market is an example of this
_ 12. logo g. one business buying another
_ 13. utilities h. a symbol that identifies a product

Explanation:

1. Collusion is a secret agreement between competing businesses to control the market.
2. A monopoly is a market with no competition.
3. A patent gives sole ownership of an invention to the inventor.
4. A natural monopoly is allowed as competition is not needed.
5. An oligopoly has few sellers.
6. Customer services are extras to attract customers.
7. Monopolies were made illegal by the Sherman Antitrust Act.
8. Reformers are people who want to make things better.
9. Price discrimination is sellers charging different buyers different prices for the same product.
10. A merger is one business buying another.
11. Pure competition has the farming market as an example.
12. A logo is a symbol that identifies a product.
13. Utilities are industries that are often natural monopolies.

Answer:

1. D. collusion
2. C. monopoly
3. A. patent
4. B. natural
5. C. sellers
6. b
7. d
8. a
9. e
10. g
11. f
12. h
13. c