Econ 101 – Section 4 – Quiz 5
A. Complete the table below using the choices at the bottom of the table. Use your answers to finish the multiple choice questions in section B.
Market Structure Characteristics
Market StructureStructure
Characteristic / Perfect
Competition / Monopoly / Monopolistic
Competition / Oligopoly
Number of firms
Products
Sold
Entry and
Exit
Number (many small, few large, one)
Products (homogenous, differentiated)
Entry-Exit (free-easy, restricted)
Market Performance Standard
Market StructurePerformance
Standard / Perfect
Competition / Monopoly / Monopolistic
Competition / Oligopoly
Abnormal
Profit
Price versus
Cost
Cost versus
Minimum Cost
Abnormal profit (equal to zero, greater than zero)
Price versus cost (greater than, equal to)
Cost versus minimum cost (greater than, equal to)
B. Questions
1. Entry and exit characteristic of a monopoly. B
a. Free-easy b. Restricted c. All d. None
2. Entry and exit characteristic of a perfect competition. A
a. Free-easy b. Restricted c. All d. None
3. Entry and exit characteristic of a monopolistic competition. A
a. Free-easy b. Restricted c. All d. None
4. Number of firms characteristic of a perfect competition. A
a. Many small b. One c. Few large d. None
5. Number of firms characteristic of a monopoly. B
a. Many small b. One c. Few large d. None
6. Number of firms characteristic of a monopolistic competition. A
a. Many small b. One c. Few large d. None
7. Product characteristic of a monopolistic competition. B
a. Homogenous b. Differentiated c. None
8. Product characteristic of a monopoly. A
a. Homogenous b. Differentiated c. None
9. Product characteristic of a perfect competition. A
a. Homogenous b. Differentiated c. None
10. Abnormal profit performance standard of a monopolistic competition. B
a. Greater than zero b. Equal to zero c. Less than zero d. None
11. Abnormal profit performance standard of a monopoly. A
a. Greater than zero b. Equal to zero c. Less than zero d. None
12. Abnormal profit performance standard of a perfect competition. B
a. Greater than zero b. Equal to zero c. Less than zero d. None
13. Actual cost versus minimum cost performance standard of a monopoly. A
a. Cost > min cost b. Cost = min cost c. Cost < min cost d. None
14. Actual cost versus minimum cost performance standard of a monopolistic competition. A
a. Cost > min cost b. Cost = min cost c. Cost < min cost d. None
15. Actual cost versus minimum cost performance standard of a perfect competition. B
a. Cost > min cost b. Cost = min cost c. Cost < min cost d. None