Online Test — Forms of Market
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
A market with a single seller and no close substitutes is a:
Monopoly
Perfect competition
Oligopoly
Monopolistic competition
Explanation: A single seller with no close substitutes is a monopoly.
Question 2 of 15
The word 'monopoly' literally means:
Many sellers
One seller
Few sellers
One buyer
Explanation: Mono = one, poly = seller — a single seller.
Question 3 of 15
A monopolist is a:
Price taker
Price maker
Quantity taker
Buyer
Explanation: As the sole seller, a monopolist can set the price.
Question 4 of 15
A feature of monopoly is:
Free entry
Strong barriers to entry
Many sellers
Identical sellers
Explanation: Monopoly has strong barriers preventing entry.
Question 5 of 15
A market with many sellers of differentiated products is:
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Explanation: Many sellers + differentiated products = monopolistic competition.
Question 6 of 15
The key feature of monopolistic competition is:
An identical product
Product differentiation
A single seller
No advertising
Explanation: Product differentiation is its defining feature.
Question 7 of 15
Different brands of soap illustrate:
Monopoly
Monopolistic competition
Perfect competition
Duopoly
Explanation: Branded soaps with many sellers = monopolistic competition.
Question 8 of 15
Firms in monopolistic competition spend heavily on:
Advertising (selling costs)
Nothing
Price cuts only
Government fees
Explanation: They advertise to differentiate their brands.
Question 9 of 15
A market dominated by a few large sellers is an:
Oligopoly
Monopoly
Perfect competition
Open market
Explanation: A few large sellers form an oligopoly.
Question 10 of 15
An oligopoly with only two firms is a:
Monopoly
Duopoly
Triopoly
Perfect market
Explanation: Two firms make a duopoly (a special oligopoly).
Question 11 of 15
The key feature of oligopoly is:
Interdependence among firms
Free entry
One seller
Identical buyers
Explanation: Few firms means each reacts to the others — interdependence.
Question 12 of 15
The car and telecom markets are examples of:
Perfect competition
Monopoly
Oligopoly
Pure competition
Explanation: A few big firms dominate these — oligopoly.
Question 13 of 15
Under perfect competition, entry of firms is:
Free
Blocked
Difficult
Illegal
Explanation: Perfect competition has free entry and exit.
Question 14 of 15
Under which market form does the firm have full control over price?
Perfect competition
Monopoly
Monopolistic competition
Oligopoly
Explanation: A monopolist (single seller) has the most price control.
Question 15 of 15
The market form closest to what we see in everyday branded goods is:
Perfect competition
Monopoly
Monopolistic competition
Pure monopoly
Explanation: Everyday branded goods reflect monopolistic competition.