Different Market Structures Quiz by Shubhrata Shrestha | Jun 28, 2025 | 0 comments Different Market Structures Quiz (1) In a perfectly competitive market, a firm's supply curve in the short run is: A. The entire marginal cost curve B. The portion of the marginal cost curve above AVC C. The average cost curve D. The total revenue curve None (2) Which of the following is an example of a natural monopoly? A. Fast food restaurant B. Electricity provider C. Furniture store D. Taxi service None (3) In the long run, monopolistically competitive firms earn: A. Normal profit B. Abnormal profit C. Negative profit D. Economic loss None (4) The kinked demand curve theory is associated with which market structure? A. Perfect competition B. Monopoly C. Oligopoly D. Monopolistic competition None (5) What does a high concentration ratio indicate? A. Increased contestability B. Market dominance by a few firms C. Perfect competition D. Decreasing returns to scale None (6) Which condition ensures allocative efficiency in a market? A. MR = MC B. P = MC C. AR = AC D. P > MC None (7) One of the key features of monopolistic competition is: A. Single seller B. Homogeneous products C. High barriers to entry D. Product differentiation None (8) Which type of efficiency is likely to be lowest in a monopoly due to lack of competition? A. X-efficiency B. Allocative efficiency C. Static efficiency D. Productive efficiency None (9) What happens in a contestable market with zero barriers? A. Long-run abnormal profit B. Only normal profits due to threat of entry C. Increased collusion D. Monopolistic behavior None (10) In the Prisoner’s Dilemma, firms often: A. Fail to cooperate even when it benefits both B. Always reach collusion C. Choose non-price competition D. Accept market prices None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
