Economics Chapter 8

‘Barriers to entry':
A. exist in economic theory, but not in the real world.
B. are often the result of government regulation.
C. usually result in pure competition.
D. are typically the result of wrongdoing on the part of a firm.

Which characteristic would best be associated with pure competition?
A. Product Differentiation
B. Price Taker
C. Non-price competition
D. Few Sellers

Into which of the following market structures is entry least difficult?
A. Monopolistic competition
B. Regulated monoply
C. Oligopoly
D. Pure monopoly

Which of the following is a reason for why there is no advertising, by individual firms, under pure competition?
A. Firms produce a homogeneous product
B. The market demand curve cannot be increased
C. Firms do not make long-run profits
D. The quantity of the product demanded is very large.

Which of the following is not a basic market model?
A. Pure enterprise
B. Oligopoly
C. Pure competition
D. Monopoly

In which market model would the number of firms be the fewest?
A. Monopolistic competition
B. Pure monopoly
C. oligopoly
D. Pure Competition

Which of the following is a characteristic of monopolistic competition?
A. Relatively easy entry
B. The absence of non-price compettion.
C. Standardised product
D. A relatively small number of firms

Which of the following is a feature of a purely competitive market?
A. The industry's demand curve is perfectly elastic.
B. Price differences between firms producing the same product.
C. Significant barriers to entry into the industry
D. Products are standardised or homogeneous

Which of the following is true under conditions of pure competition?
A. Firms that cannot make pure or economic profits go bankrupt.
B. No single firm can influence the market price by changing its output
C. There are differentiated products.
D. The market demand curve is perfectly elastic.

Under which market model are the conditions of entry into the market easiest?
A. Oligopoly
B. Pure Competition.
C. Monopolistic competition
D. Pure monopoly