Which of the following markets is most likely to be an oligopoly?
A) household appliances
B) local utilities
C) the retail trade
D) the market for agricultural products
E) stock markets
Question 2Which of the following is the difference between monopoly and monopolistic competition?
A) In monopolistic competition, customers are not as responsive to changes in price if they have accepted the product differences; while in a monopoly, customers have few viable substitutes available and because of this, are less responsive to changes in price.
B) In a monopoly, companies have total control over price because they can differentiate their products; while in monopolistic competition, companies have no influence on price.
C) In a monopoly, competition is based on price or on differentiation of products; while in monopolistic competition, competition is based on promotion or on product differentiation.
D) In monopolistic competition, fewer companies dominate the market; while in a monopoly, many similar firms compete in the market.
E) In a monopoly, each firm sells a small percentage of the total sold in the market; while in monopolistic competition, each firm sells a high percentage of the total sold in the market.
Question 3International managers must collaborate with local managers to expand their business in the international market.
Indicate whether the statement is true or false
Question 4Which of the following differentiates oligopoly from perfect competition?
A) In an oligopoly, firms have the ability to differentiate their products from competitors, while in perfect competition, firms remain in a high rivalry where the actions of one firm affect the other
B) In an oligopoly, there are relatively few companies that dominate the market; while in perfect competition, many similar firms compete in the market.
C) In perfect competition, customers have few viable substitutes available; while in an oligopoly, customers have many substitutes to choose from.
D) In an oligopoly, firms have the ability to promote their products differently from competitors; while in perfect competition, product differentiation helps companies compete.
E) In perfect competition, companies have total control over price because they can differentiate their products; while in an oligopoly, companies have no influence on the price.
Question 5Which of the following is a feature of perfect competition?
A) Customers have few viable substitutes available and are less responsive to changes in price.
B) Companies can differentiate their products.
C) Any one company has little to no influence on price.
D) A very few companies dominate the market.
E) Dominating companies can set the price by controlling the quantity produced.
Question 6Which of the following is most likely to be characterized by perfect competition?
A) the market for shoes
B) the market for autos
C) the market for fish products
D) the retail trade
E) local utilities
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