Quiz-test yourself
Chapter 14-Competitive Markets
Q.1 What is a competitive firm?
Q.3 What is an abnormal profit?
Chapter 15-Monopoly
Q.4 A monopoly is:
(a) A firm which dominates a market. (b) A firm which has many competitors in a market.
Q.5 A monopoly's marginal revenue is _________ the price of its good.
(a) above (b) below (c) the same as
Q.6 What is it called if a business decides to charge different customers, different prices for the same good or service?
Chapter 16-Monopolistic Competition
Q.7 Which of the following best describe monopolistic competition?
(a) A market structure in which many firms sell different products
(b) A market structure in which many firms sell identical products
Q.8 Product differentiation and advertising are characteristics more commonly found in what type of market structure?
(a) Oligopoly
(b) Monopolistic Competition
(c) Monopoly
Q.9 The fact that good substitutes are available is the feature that differentiates monopolistic competition from:
(a) Perfect competition
(b) Monopoly
(c) Both of the above
Chapter 17-Oligopoly
Q.10 What is an oligopoly?
Q.11 When firms lower their prices in order to eliminate other firms out of the market it is known as?
(a) Predatory Pricing (b) Limit Pricing (c) Price Drop
Q.12 When the market is dominated by only 2 firms it is known as a _________?
(a) Partnership (b) Duopoly (c) Two-Firm
Q.1 What is a competitive firm?
- (a) When one firm offers a product.
- (b) When many firms are offering a similar product and feel they are in competition with one another.
- (c)When substitutes are introduced to the market.
- (a) Consumers who buy products from a firm.
- (b) Buyers and sellers who accept the prices set by a competitive market.
- (c) Buyers who negotiate prices with a firm.
Q.3 What is an abnormal profit?
- (a) The profit over and above normal profit.
- (b) The minimum amount required to keep factors of production in their current use.
Chapter 15-Monopoly
Q.4 A monopoly is:
(a) A firm which dominates a market. (b) A firm which has many competitors in a market.
Q.5 A monopoly's marginal revenue is _________ the price of its good.
(a) above (b) below (c) the same as
Q.6 What is it called if a business decides to charge different customers, different prices for the same good or service?
Chapter 16-Monopolistic Competition
Q.7 Which of the following best describe monopolistic competition?
(a) A market structure in which many firms sell different products
(b) A market structure in which many firms sell identical products
Q.8 Product differentiation and advertising are characteristics more commonly found in what type of market structure?
(a) Oligopoly
(b) Monopolistic Competition
(c) Monopoly
Q.9 The fact that good substitutes are available is the feature that differentiates monopolistic competition from:
(a) Perfect competition
(b) Monopoly
(c) Both of the above
Chapter 17-Oligopoly
Q.10 What is an oligopoly?
Q.11 When firms lower their prices in order to eliminate other firms out of the market it is known as?
(a) Predatory Pricing (b) Limit Pricing (c) Price Drop
Q.12 When the market is dominated by only 2 firms it is known as a _________?
(a) Partnership (b) Duopoly (c) Two-Firm
Answers: 1-b, 2-b, 3-a, 4-a, 5-b, 6-price discrimination, 7-c, 8-b, 9-b, 10-a market where a few sellers sell similar or identical products or services., 11-a , 12-b .