Market Structure economics homework questions

Posted on 2014-01-09 12:44:00 in Economics by DAMGIIIRL12

Just a few homework questions that I need help on please!



14. A trust is most closely related to a(n)

A) household

B) cartel

C) focus group

D) government agency



15. Which of the following is not a characteristic of Perfect Competition?

A) Numerous buyers and sellers

B) Unique products

C) Freedom to enter and exit markets

D) Independent, well-informed buyers and sellers



16. Perfect Competition is best described as having…

A) homogenous (standardized) products

B) little to no barriers to entry

C) many buyers and sellers

D) all of the above



17. A _______ monopoly exists when one business is authorized (given power) as the only producer.

A) perfect

B) capitalistic

C) government

D) neoclassical



21. Which of the following criteria define an oligopoly, according to most economists?

A) 2-4 large firms control an industry

B) a few firms that control 70-80% of total output

C) large firms either compete or work together

D) all of the above



22. Which of the following is a negative effect of price-fixing?

A) Consumers will pay more than they can usually afford which deprives them of other needed goods and services.

B) Federal agencies will promote further competition in their market.

C) Barriers of entry will be removed, allowing for more competition.

D) Regulation will promote interstate commerce.



23. Selling products below cost to drive competitors out of the market is best explained by…

A) Mergers

B) Predatory pricing

C) Deregulation

D) Antitrust laws



25. Which of the following statements best explains why technology serves as a barrier to entry?

A) It serves as a market structure that does not meet the conditions of perfect competition.

B) It promotes a product that is the same no matter who produces it.

C) Some markets require a high degree of technological know-how, requiring a lot of preparation and studying.

D) It allows for many buyers and sellers to participate in the market.

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