AnswersAA - F26 Personal Finance and EconomicsMarket Structures and Competition

Market Structures and Competition Answers

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Which statements describe characteristics of pure competition? Check all that apply.Prices are set by supply and demand alone.It is difficult for producers to enter the market.Producers provide identical goods to consumers.There are many producers, and each has a small market share.Only one producer controls the market.It is a theoretical state that is only approximated in the real world.

A
Prices are set by supply and demand alone.
B
It is difficult for producers to enter the market.
C
Producers provide identical goods to consumers.
D
There are many producers, and each has a small market share.
E
Only one producer controls the market.
F
It is a theoretical state that is only approximated in the real world.
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In an oligopolistic market, consumer choice is

A
nonexistent.
B
limited.
C
extensive.
D
infinite.
3

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
4

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
5

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.

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