Market Structures and Competition

Question 1

When an oligopoly exists, how many producers dominate the market?

Revolt · Accepted Answer

a few

Question 2

If consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited?

Revolt · Accepted Answer

Choices are driven by price when goods are identical.

Question 3

SovereigntyCompetitionOligopoly

Revolt · Accepted Answer

Sovereignty

Question 4

Which helps enable an oligopoly to form within a market?

Revolt · Accepted Answer

Costs of starting a competing business are too high.

Question 5

The market for which item generally involves pure competition?

Revolt · Accepted Answer

corn

Question 6

Why is competition limited in an oligopoly?

Revolt · Accepted Answer

High entry costs prevent new producers from entering the market.

Question 7

Natural monopolies occur when one producer

Revolt · Accepted Answer

can meet the market’s entire demand.

Question 8

Which best describes the availability of substitutes in a monopoly?

Revolt · Accepted Answer

There are no substitutes.

Question 9

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

Revolt · Accepted Answer

government monopoly

Question 10

In pure competition, producers compete exclusively on the basis of

Revolt · Accepted Answer

selling identical items.

Market Structures and Competition Answers