Local Competition

1. Which market structure is easiest for a newcomer to enter?

a. perfect competition

b. monopolistic competition

c. monopoly

d. All are easy to enter.

2. Businesses multiply the price they charge for a good by the quantity sold to calculate

a. profit shares.

b. elastic demand.

c. total revenue. d. market demand.

3. What condition has been reached when buyers purchase exactly as much as sellers are willing to sell?

a. supply and demand

b. shortage

c. equilibrium

d. price floor

4. If two shops sell the same merchandise but one offers a higher level of service, the service distinction is

a. price fixing.

b. nonprice competition.

c. choice among substitute products.

d. local competition.