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Market Types Practice

Decide if the given example is representative of a monopoly, an oligopoly, monopolistic competition, or perfect competition.

  1. Price taker
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: d. perfect (pure) competition

  2. Price maker
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: a. monopoly

  3. Most will have the same price
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: b. oligopoly

  4. Most will have the same price
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: c. monopolistic competition

  5. Standard or homogeneous product
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: d. perfect (pure) competition

  6. Differentiated product
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: c. monopolistic competition

  7. Differentiated or standardized product
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: b. oligopoly

  8. Unique Product
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: a. monopoly

  9. Very easy to enter and exit the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: d. perfect (pure) competition

  10. Relatively Easy to enter and exit the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: c. monopolistic competition

  11. Difficult to enter the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: b. oligopoly

  12. Impossible to enter the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: a. monopoly

  13. Very many competitors in the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: d. perfect (pure) competition

  14.  Many competitors selling similar items in the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: c. monopolistic competition

  15. A few competitors in the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: b. oligopoly

  16. One competitor in the market
    1. monopoly
    2. oligopoly
    3. monopolistic competition
    4. perfect (pure) competition

    Answer: a. monopoly