Alternative Market Structures

Question 1

in a …………………….. market, a seller has substantial control over the market price

Answer 1

monopoly

Question 2

In a ……………..market, an individual seller has no control over the market price

Answer 2

perfectly competitive

Question 3

A market where only a single buyer exists is called …………………………..

Answer 3

monopsony market

Question 4

A market where only two buyers exist is called …………………….

Answer 4

duopsony market

Question 5

A market where a few buyers exist is called ……………………

Answer 5

oligopsony market

Question 6

Sellers in a perfectly competitive market sell …………….. type of products

Answer 6

homogenous or similar

Question 7

There is no barrier upon entry and exit of a seller in ………………….. market

Answer 7

perfectly competitive

Question 8

The factors of production in a perfectly competitive market are …………………

Answer 8

perfectly mobile

Question 9

In a perfectly competitive market, the prices are determined by interaction between …………….. and ………………………….

Answer 9

aggregate demand and aggregate supply

Question 10

each seller is a ……………….. in a perfectly competitive market

Answer 10

price-taker

Question 11

each seller is a price-taker in a …………………….

Answer 11

perfectly competitive market

Question 12

no seller will give a special discount to a particular buyer and no buyer will have a particular attachment towards a particular seller in ………………………….

Answer 12

perfectly competitive market

Question 13

no seller will give a special discount to a particular buyer and no buyer will have a particular attachment towards a particular seller in ………………………….

Answer 13

perfectly competitive market

Question 14

In a perfectly competitive market, when production capacity is fully utilised, the average cost becomes ……………………………

Answer 14

minimum

Question 15

A firm in the …………….. market earns normal profit in the long run

Answer 15

perfectly-competitive `

Question 16

A firm and an industry is same in ……………….

Answer 16

Monopoly

Question 17

In a …………… market, each seller sells homogenous products that are perfect substitutes

Answer 17

perfectly- competitive

Question 18

The buyers have perfect knowledge about the market in ………………………….

Answer 18

perfectly-competitive market

Question 19

Each seller faces ………………….. demand curve in a perfectly-competitive market

Answer 19

an elastic

Question 20

firms in the ……………… markets do not find the necessity of spending money on advertising

Answer 20

perfectly-competitive market

Question 21

firms in the perfectly-competitive market do not find the necessity of spending money on ……………………

Answer 21

advertising

Question 22

if the demand curve is perpendicular, the demand is ……………….

Answer 22

perfectly inelastic demand

Question 23

if the demand curve is horizontal, the demand is ……………………

Answer 23

infinitely elastic

Question 24

Number of sellers in a monopolistic market is ……………..

Answer 24

one

Question 25

The product sold in a monopoly market ………………

Answer 25

does not have a close substitute

Question 26

In a monopoly, each firm is a ……………………

Answer 26

price-maker

Question 27

The entry of new firms in a ……………….. market is restricted

Answer 27

monopoly

Question 28

What is the demand curve faced by a monopoly market?

Answer 28

relatively inelastic

Question 29

Relatively elastic supply curve is faced by ……………. market

Answer 29

monopoly

Question 30

In ………………….. market, the buyers have no perfect knowledge about the market

Answer 30

monopoly

Question 31

In a monopoly market, the buyer does not feel the necessity of spending money on advertising because of the absence of …………………………..

Answer 31

close substitutes

Question 32

The demand curve faced by the firm in the monopoly market is ……………………………..

Answer 32

downward sloping and relatively inelastic

Question 33

In order to capture a foreign market, the monopolist may keep the price lower in the foreign market than in the domestic market, this is called …………………..

Answer 33

dumping

Question 34

There are ………………..sellers selling differentiated but substitute products in a …………………….. market

Answer 34

many, monopolistic competition

Question 35

In a ………………….. each firm has a degree of control over the price of the products

Answer 35

monopolistic competition

Question 36

The demand curve faced by the monopolistic competition market?

Answer 36

downward-sloping, relatively elastic demand curve

Question 37

Each firm spends a substantial amount of money on advertising costs in a …………………….. market

Answer 37

monopolistic competition