Kind Of Market Structures Quiz Questions
Given the type of business or industry below, identify what kind of market structure it belongs to.
Questions and Answers
- 1.
Ice cream in the Philippines
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
C. OligopolyExplanation
Oligopoly is the correct answer because it refers to a market structure where a few large firms dominate the industry. In the case of ice cream in the Philippines, there are likely a few major players that control a significant portion of the market. This is different from perfect competition, where there are many small firms, and monopolistic competition, where there are many firms with differentiated products. A monopoly, on the other hand, would involve a single firm controlling the entire market, which is not the case in this scenario.Rate this question:
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- 2.
Fruit markets
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
A. Perfect CompetitionExplanation
Perfect competition is the correct answer because in a fruit market, there are usually many buyers and sellers, each offering a similar product. In perfect competition, there is a large number of buyers and sellers, homogeneous products, perfect information, no barriers to entry or exit, and no market power for any individual buyer or seller. This scenario is likely to be observed in a fruit market where multiple sellers offer similar fruits, and buyers have the freedom to choose from different sellers based on price and quality.Rate this question:
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- 3.
Electricity
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
D. MonopolyExplanation
A monopoly refers to a market structure where there is a single seller or producer of a particular good or service, with no close substitutes available. In a monopoly, the seller has complete control over the market and can set prices as they please. This lack of competition allows the monopolist to maximize their profits and potentially exploit consumers by charging higher prices. Therefore, the given answer of "monopoly" is correct as it accurately describes a market structure characterized by a single seller with significant market power.Rate this question:
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- 4.
The movie industry
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
B. Monopolistic CompetitionExplanation
Monopolistic competition is the correct answer because the movie industry is characterized by a large number of firms that produce differentiated products. In this market structure, each firm has some control over the price of its product, but there are also close substitutes available from other firms. This allows for some degree of competition, but also enables firms to differentiate their products and create brand loyalty. Therefore, monopolistic competition best describes the movie industry where there are many producers, differentiated products, and some control over pricing.Rate this question:
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- 5.
The soda industry
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
C. OligopolyExplanation
Oligopoly is the correct answer because the soda industry is characterized by a few large firms that dominate the market. In an oligopoly, these firms have significant market power and can influence prices and competition. This is evident in the soda industry, where a few major companies, such as Coca-Cola and PepsiCo, control a large portion of the market share. These companies engage in strategic pricing and advertising to differentiate their products and gain a competitive advantage. Therefore, the soda industry aligns with the characteristics of an oligopoly market structure.Rate this question:
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- 6.
Books
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
B. Monopolistic CompetitionExplanation
Monopolistic competition refers to a market structure where there are multiple sellers offering differentiated products, but with some degree of market power. In this type of competition, each seller has a certain level of control over the price of their product due to the differentiation. This allows sellers to have some influence over their market share and profit margins. Unlike perfect competition, monopolistic competition allows for product differentiation and branding, giving sellers a certain level of uniqueness in the market. Therefore, the answer "Monopolistic Competition" is the most appropriate description for the given list of market structures.Rate this question:
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- 7.
Fish market
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
A. Perfect CompetitionExplanation
Perfect competition is the correct answer because a fish market is characterized by a large number of buyers and sellers, homogeneous products, easy entry and exit, perfect information, and no market power. In a perfect competition market, no single buyer or seller can influence the market price, and all firms are price takers. This aligns with the nature of a fish market where multiple sellers offer similar products (fish) and buyers have many options to choose from.Rate this question:
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- 8.
Schools
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
B. Monopolistic CompetitionExplanation
Monopolistic competition refers to a market structure where there are many sellers offering differentiated products, meaning that each firm has some control over the price of its product. In this type of competition, firms have some degree of market power, as they can differentiate their products through branding, advertising, or other means. However, there are still many competitors in the market, which prevents any single firm from having complete control over the market. This allows for some level of competition and choice for consumers, while still allowing firms to have some control over their pricing and product differentiation.Rate this question:
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- 9.
Malls in the Philippines
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
C. OligopolyExplanation
An oligopoly refers to a market structure where a few large firms dominate the industry. In the context of malls in the Philippines, it suggests that there are only a few major players in the market who have significant control over the industry. This could be due to high barriers to entry, such as high capital requirements or limited available space for new malls. The presence of a few dominant firms in the market allows them to have a considerable influence on prices, product offerings, and market competition.Rate this question:
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- 10.
Water supply
- A.
Perfect Competition
- B.
Monopolistic Competition
- C.
Oligopoly
- D.
Monopoly
Correct Answer
D. MonopolyExplanation
A monopoly refers to a market structure where there is only one seller or producer of a particular good or service, and there are no close substitutes available. In this case, the explanation suggests that the concept of a monopoly is relevant to the topic of water supply. This implies that there is only one company or entity controlling the supply of water, and there are no other competitors in the market.Rate this question:
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Current Version
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Mar 22, 2023Quiz Edited by
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Jan 10, 2016Quiz Created by
Nikster_santos
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