Market Structures and Competition

Question 1

In an oligopolistic market, consumer choice is

Revolt · Accepted Answer

limited.

Question 2

Which helps enable an oligopoly to form within a market?

Revolt · Accepted Answer

Costs of starting a competing business are too high.

Question 3

Why is competition limited in an oligopoly?

Revolt · Accepted Answer

High entry costs prevent new producers from entering the market.

Question 4

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

Revolt · Accepted Answer

cell phone carriers

Question 5

In pure competition, producers compete exclusively on the basis of

Revolt · Accepted Answer

selling identical items.

Question 6

The market for which item generally involves pure competition?

Revolt · Accepted Answer

corn

Question 7

Which best describes the availability of substitutes in a monopoly?

Revolt · Accepted Answer

There are no substitutes.

Question 8

The lack of competition within a monopoly means that

Revolt · Accepted Answer

monopolists set their own price.

Question 9

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

Revolt · Accepted Answer

by creating and running a monopoly

Question 10

Who sets the price in a monopolistic competition?

Revolt · Accepted Answer

producers and consumers

Market Structures and Competition Answers