Quiz

Ex nihilo nihil fit.

Identification
1. This has elements that are organized, and oftentimes institutionally
regulated; such as system impacts pricing and distribution.
2. It is a product that is identical across suppliers, such as a sack of
wheat, a sack of corn, or share of company stock.
3. It is a type of market structure where many companies are present
in an industry, and they produce similar but differentiated products.
4. It is a term used to explain the structure of a specific market,
industry, or company.
5. It has more market power than does a business in another market
structure.
Identification
6. It thrives on innovation and variety. Companies must continuously
invest in product development and advertising and increase the variety
of their products to appeal to their target markets. Competition with
other companies is thus based on quality, price, and marketing.
7. These are the companies who generally do not enter such price wars
and, instead, tend to funnel more money into research to improve
their goods and services, and into advertising that highlights the
superiority of what they offer over other companies with similar
products.
Identification
8. Companies in this market structure are productively and allocatively
inefficient as they operate with existing excess capacity. Because of the
large number of companies, each player keeps a small market share
and is unable to influence the product price. Therefore, collusion
between companies is impossible.
9. It is a type of firm which is so small relative to the size of the market
that the firm’s quantity decision has no effect on the market price.
10. It is form when several dominant companies rule over a particular
market or industry.
Write CLAP if the statement is TRUE and CAP if the statement is FALSE.

1. Monopolistic competition occurs when numerous companies

operate in an industry and produce similar but differentiated products.
2. Mark-up is the difference between price and marginal cost.
3. The term monogamy comes from a Greek word meaning “one
seller”.
4. A comorbidity is a product that is identical across suppliers.
5. There is no market power in perfect competition.
6. Production at the lowest possible cost is only completed by
companies in monopolistic competition.
Write CLAP if the statement is TRUE and CAP if the statement is FALSE.

7. The primary idea behind a perfectly competitive market is that a few

companies rule over many in a particular market or industry, offering
similar goods and services.
8. Oligopoly is an industry with significant barriers to entry and a
single supplier.
9. Monopoly is the least competitive structure.
10. Both the buyers and sellers are fully informed about the price, is
one of the characteristics of a perfectly competitive market.
Enumeration

• 3 Features of Perfect Competition

• 3 Characteristics of Monopolistic Competition
• 2 Significant factors of Oligopolistic Market
• Difference between Monopoly and Monopolistic Market
• Give 1 reason why is it hard to enter a Oligopolistis Market.