Pretest

Question 1

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

Revolt · Accepted Answer

a few

Question 2

Which is an example of a government monopoly in the United States?

Revolt · Accepted Answer

the US Postal Service

Question 3

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

Revolt · Accepted Answer

by creating and running a monopoly

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

Who sets the price in a monopolistic competition?

Revolt · Accepted Answer

producers only

Question 6

Why is competition limited in an oligopoly?

Revolt · Accepted Answer

High entry costs prevent new producers from entering the market.

Question 7

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 8

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

Revolt · Accepted Answer

cell phone carriers

Question 9

In an oligopolistic market, consumer choice is

Revolt · Accepted Answer

limited.

Question 10

The lack of competition within a monopoly means that

Revolt · Accepted Answer

monopolists set their own price.

Pretest Answers