JAMB Economics questions: Market structures

16 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Market structures· JAMB

   A cartel is

   • Aa single firm
   • Ba group of firms that agree to fix prices or output
   • Ca government agency
   • Da trade union

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2. Question 2· Market structures· JAMB

   A market with a single seller of a product that has no close substitutes is

   • Amonopolistic competition
   • Bperfect competition
   • Can oligopoly
   • Da monopoly

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3. Question 3· Market structures· JAMB

   In oligopoly, a kinked demand curve helps to explain

   • Aperfect competition
   • Bprice rigidity
   • Cfree entry
   • Dzero profits

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4. Question 4· Market structures· JAMB

   Barriers to entry that protect a monopoly include

   • Aidentical products
   • Bmany small firms
   • Cfree information
   • Dpatents and control of raw materials

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5. Question 5· Market structures· JAMB

   A firm in perfect competition is a price taker because

   • Athe government fixes the price
   • Bthere are many firms selling identical products
   • Cit is the only seller
   • Dit advertises heavily

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6. Question 6· Market structures· JAMB

   In perfect competition, the demand curve facing a single firm is

   • Avertical
   • Bdownward sloping
   • Cperfectly elastic (horizontal)
   • Dupward sloping

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7. Question 7· Market structures· JAMB

   In the long run, firms in perfect competition earn

   • Amonopoly profit
   • Bsupernormal profit
   • Closses
   • Donly normal profit

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8. Question 8· Market structures· JAMB

   A monopolist's demand curve is

   • Ahorizontal
   • Bperfectly elastic
   • Cvertical
   • Dthe market demand curve, downward sloping

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9. Question 9· Market structures· JAMB

   Monopsony is a market with

   • Aone buyer
   • Bone seller
   • Ctwo sellers
   • Dmany buyers

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10. Question 10· Market structures· JAMB

    Which of the following is a barrier to entry into an industry?

    • Afree information
    • Bmany small firms
    • Cpatents and licences
    • Dlow start-up costs

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11. Question 11· Market structures· JAMB

    Monopolistic competition is a market with

    • Aone seller
    • Bmany firms selling differentiated products
    • Ca few sellers of identical products
    • Done buyer

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12. Question 12· Market structures· JAMB

    A market dominated by a few large sellers, such as the mobile phone network market in Nigeria, is

    • Aperfect competition
    • Ba monopoly
    • Can oligopoly
    • Da monopsony

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13. Question 13· Market structures· JAMB

    A monopolist maximises profit at the output where

    • Aprice equals average cost
    • Baverage cost is lowest
    • Cmarginal cost equals marginal revenue
    • Dtotal revenue is highest

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14. Question 14· Market structures· JAMB

    A natural monopoly arises where

    • Aproducts are identical
    • Bthe government bans competition
    • Cthere are many sellers
    • Done firm can supply the whole market at lower cost than several firms

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15. Question 15· Market structures· JAMB

    Price discrimination is possible when

    • Athere are many sellers
    • Bmarkets can be separated and have different elasticities of demand
    • Cthe product is homogeneous
    • Dbuyers can resell easily

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16. Question 16· Market structures· JAMB

    Under perfect competition in the long run, firms earn

    • Asupernormal profit
    • Bonly normal profit
    • Closses
    • Dmonopoly profit

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    Explanation and discussion