Market Structures And Competition Test Questions and
Answers Rated A
Which helps enable an oligopoly to form within a
market? natural monopoly
Costs of starting a competing business are too de facto monopoly
high.
government monopoly
The government restricts market entry.
technological monopoly - ANSWER -
The number of options in a market confuses technological monopoly
consumers.
No competition exists between producers. - The market for which item generally involves
ANSWER -Costs of starting a competing pure competition?
business are too high.
cola
Why is the automobile industry considered an corn
oligopoly?
jeans
It offers little differentiation within the market.
ice cream - ANSWER -corn
It has significant barriers to entry.
It is controlled by companies that patent key Why is competition limited in an oligopoly?
technology.
High entry costs prevent new producers from
It relies on price variation to attract customers. entering the market.
It depends on brand loyalty and image to Producers completely refuse to engage in price
generate sales. wars.
It is dominated by a few key players. - No major distinctions exist between producers.
ANSWER -It has significant barriers to
entry. Producers actively segment the market to avoid
competition. - ANSWER -High entry costs
It depends on brand loyalty and image to prevent new producers from entering the market.
generate sales.
It is dominated by a few key players. In pure competition, producers compete
exclusively on the basis of
Wellness Pharmaceuticals has released a new sell identical items.
antidepressant, Lexabuzac. Which type of
monopoly does the company most likely have on advertise heavily to promote their good.
this medication?
1/3
Answers Rated A
Which helps enable an oligopoly to form within a
market? natural monopoly
Costs of starting a competing business are too de facto monopoly
high.
government monopoly
The government restricts market entry.
technological monopoly - ANSWER -
The number of options in a market confuses technological monopoly
consumers.
No competition exists between producers. - The market for which item generally involves
ANSWER -Costs of starting a competing pure competition?
business are too high.
cola
Why is the automobile industry considered an corn
oligopoly?
jeans
It offers little differentiation within the market.
ice cream - ANSWER -corn
It has significant barriers to entry.
It is controlled by companies that patent key Why is competition limited in an oligopoly?
technology.
High entry costs prevent new producers from
It relies on price variation to attract customers. entering the market.
It depends on brand loyalty and image to Producers completely refuse to engage in price
generate sales. wars.
It is dominated by a few key players. - No major distinctions exist between producers.
ANSWER -It has significant barriers to
entry. Producers actively segment the market to avoid
competition. - ANSWER -High entry costs
It depends on brand loyalty and image to prevent new producers from entering the market.
generate sales.
It is dominated by a few key players. In pure competition, producers compete
exclusively on the basis of
Wellness Pharmaceuticals has released a new sell identical items.
antidepressant, Lexabuzac. Which type of
monopoly does the company most likely have on advertise heavily to promote their good.
this medication?
1/3
