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Market structures - self-test questions - You can skip this for now as it is Theory of the firm

question

1

Market structures

Match the following descriptions with the appropriate market structure?

a)
b)
c)
d)
Yes, that's correct. Well done.No, that's not quite right. Try again.Your answer has been saved.
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2

Market structures

Which of the following is the most competitive market structure?

a)
b)
c)
d)
Please select an answerYes, well done.No, this is fairly competitive but not the most competitive.No, this is where a few firms only dominate the market.No, this is the least competitive.
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3

Market structures

Which of the following is the least competitive market structure?

a)
b)
c)
d)
Please select an answerNo, this is the most competitive.No, this is fairly competitive.No, this is where a few firms only dominate the market.Yes, well done.
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4

Market structures

Which of the following is NOT a feature of monopolistic competition?

a)
b)
c)
d)
Please select an answerNo, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.No, this is a feature. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.Yes, this is not a feature - products are assumed to be differentiated. Although the firms are competing against each other, in monopolistic competition there is sufficient differentiation so as to view each firm as almost a monopoly for their own product.
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5

Market structures

In which form of market structure would price be the key factor when competing?

a)
b)
c)
d)
Please select an answerNo, there will be NO competition for the firm here.No, the few firms in this industry can also compete in non-price competition.No, firms will also compete through product differentiation. Yes, all products appear the same which means price becomes a crucial factor in competition. In perfect competition, there are many firms selling homogenous products. Prices are driven down to the same level.
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