Market Structures and Competition Answers

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

natural monopoly

de facto monopoly

government monopoly

technological monopoly

Which best describes the availability of substitutes in a monopoly?

Price points vary.

There are no substitutes.

There are different brands.

Products have different features.

The lack of competition within a monopoly means that

offered goods and services are lackluster.

the product’s market is small.

consumers must look elsewhere to find options.

monopolists set their own price.

Which helps enable an oligopoly to form within a market?

Costs of starting a competing business are too high.

The government restricts market entry.

The number of options in a market confuses consumers.

No competition exists between producers.

Why is the automobile industry considered an oligopoly? Select all that apply.

It offers little differentiation within the market.

It has significant barriers to entry.

It is controlled by companies that patent key technology.

It relies on price variation to attract customers.

It depends on brand loyalty and image to generate sales.

It is dominated by a few key players.

In an oligopolistic market, consumer choice is

nonexistent.

limited.

extensive.

infinite.

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