Market Structures and Competition Answers

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21
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The market for which item generally involves pure competition?

A
cola
B
corn
C
jeans
D
ice cream
22
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When an oligopoly exists, how many producers dominate the market?

A
none
B
one
C
a few
D
many
23

Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?

A
natural monopoly
B
de facto monopoly
C
government monopoly
D
technological monopoly
24

Which best describes the availability of substitutes in a monopoly?

A
Price points vary.
B
There are no substitutes.
C
There are different brands.
D
Products have different features.
25

Which best describes how the government enables government monopolies to exist?

A
by issuing a patent
B
by allowing natural monopolies to exist
C
by creating and running a monopoly
D
by owning the means of production
26

Which helps enable an oligopoly to form within a market?

A
Costs of starting a competing business are too high.
B
The government restricts market entry.
C
The number of options in a market confuses consumers.
D
No competition exists between producers.
27

Which best describes how the government sanctions technological monopolies?

A
by creating the technology itself
B
by prohibiting others from entering the market
C
by issuing a patent for the technology
D
by authorizing one producer
28

In the United States, which type of industry is often considered part of an oligopoly?

A
local electric utility service
B
cell phone carrier service
C
USPS letter-mail service
D
retail denim sales
29

Who sets the price in a monopolistic competition?

A
producers and consumers
B
consumers only
C
government
D
producers only
30

The lack of competition within a monopoly means that

A
offered goods and services are lackluster.
B
the product’s market is small.
C
consumers must look elsewhere to find options.
D
monopolists set their own price.

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