MCQ On Market Structure

10 Questions | By RDawson | Last updated: Sep 18, 2022 | Total Attempts: 3846

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How good is your knowledge of the Market structures? Our MCQ quiz on this topic can help you check how much you know. Can you tell the difference between Oligoplogy and duopoly? Please read carefully and answer all questions. Let's see how many you get correct. We challenge you to get a high score! Our quiz can be a great way to prepare for your examinations. So, make sure to answer carefully. We wish you all the very best with our quiz. Have fun!

Questions and Answers

1.

In a Market structure called 'Monopoly' there will:
- A.
  
  One firm
- B.
  
  Two firms
- C.
  
  Few Firms
- D.
  
  Many firms
2.

Monopoly and Monopolistic Competition mean the same:
- A.
  
  True
- B.
  
  False
3.

Tick the boxes that belong to Imperfect competition:
- A.
  
  Monoply
- B.
  
  Monopolistic
- C.
  
  Perfect
- D.
  
  Monopsony
4.

The main difference between Oligopoly and duopoly is
- A.
  
  Strong Bariers
- B.
  
  Similar Products
- C.
  
  No: of firms
- D.
  
  Imperfect knowledge
5.

The most obvious way firms can compete with each other is by lowering their __________. The most common Non-Price competition is Product _________________.
6.

A monopoly is said to misallocate resources
- A.
  
  Because it faces a downward-sloping demand curve
- B.
  
  Because under certain circumstances different consumers are charged different prices for the same product or services
- C.
  
  Because without competition there is no pressure on the firm to be efficient
- D.
  
  None of the above
7.

When the monopolist equates MC to MR then the firm would be:
- A.
  
  Maximizing sales
- B.
  
  Maximizing profit
- C.
  
  Maximizing economies of scale
- D.
  
  Maximizing output
8.

Who is the originator of the theory of monopolistic competition?
- A.
  
  R.A. Musgrave
- B.
  
  Adam Smith
- C.
  
  Joan Robinson
- D.
  
  E.H. Chamberlain
9.

The conditions for profit maximization by a firm are that:
- A.
  
  MC = MR and MC cuts MR from below
- B.
  
  MC = AC and AR cuts MC from below
- C.
  
  MC = AR and MC cuts MR from below
- D.
  
  None of the above