competition

Question 1

What is perfect competition?

Answer 1

A market structure where numerous small firms compete against each other with no single firm having market control.

Question 2

True or False: In a perfectly competitive market, firms can influence the market price.

Answer 2

False

Question 3

Fill in the blank: In perfect competition, the products offered by firms are __________.

Answer 3

homogeneous

Question 4

What is the primary characteristic of monopolistic competition?

Answer 4

Firms sell differentiated products.

Question 5

Multiple Choice: Which of the following is NOT a type of market structure?
A) Monopoly
B) Oligopoly
C) Duopoly
D) Perfect Competition

Answer 5

C) Duopoly

Question 6

What is the main feature of an oligopoly?

Answer 6

A market structure where a few large firms dominate the market.

Question 7

True or False: In a monopoly, there are many sellers in the market.

Answer 7

False

Question 8

What are barriers to entry?

Answer 8

Obstacles that make it difficult for new firms to enter a market.

Question 9

Short answer: Name one advantage of perfect competition.

Answer 9

Efficient allocation of resources.

Question 10

Multiple Choice: Which market structure generally results in higher prices for consumers?
A) Perfect Competition
B) Monopolistic Competition
C) Monopoly
D) Oligopoly

Answer 10

C) Monopoly