Worksheet: Forms of Market | Commercial Applications - Class 6 PDF Download

Fill in the Blanks

Q1: In a monopolistic market, the ____________ organization has overall control of the entire market.

Q2: An oligopoly is a market form with a few firms, none of which can hold the others back from having a ____________ impact.

Q3: Perfect competition is characterized by a large number of buyers and sellers who transact homogeneous or similar goods at a ____________ fixed by the market or industry.

Q4: Monopolistic competition is closely related to the business strategy of ____________ and differentiation.

Q5: A natural monopoly can exist naturally due to the great start-up costs or incredible ____________ of conducting business in a particular industry.

Multiple Choice Questions (MCQ)

Q1: Which of the following market structures is characterized by a single seller with complete control over the market?
(a) Oligopoly
(b) Perfect competition
(c) Monopoly
(d) Monopsony

Q2: In an oligopolistic market, the concentration ratio measures:
(a) The degree of product differentiation
(b) The size of the market
(c) The piece of the market share held by the largest firms
(d) The number of buyers and sellers in the market

Q3: What is the defining characteristic of perfect competition?
(a) High barriers to entry
(b) Product differentiation
(c) A large number of buyers and sellers
(d) Complete control over prices

Q4: Monopolistic competition is often associated with:
(a) A single dominant seller
(b) Identical products
(c) High barriers to entry and exit
(d) Brand differentiation

Q5: A monopsony is a market situation where:
(a) There is only one buyer
(b) There is a large number of sellers
(c) The market is perfectly competitive
(d) The demand curve is upward-sloping

True and False

Q1: True or False: In perfect competition, firms have control over the market price.

Q2: True or False: Monopolistic competition involves a large number of firms selling identical products.

Q3: True or False: Monopoly is a market structure where there are many sellers of a homogeneous product.

Q4: True or False: Oligopoly is a market structure with a large number of small firms.

Q5: True or False: A natural monopoly can exist due to high start-up costs and economies of scale.

Short Answer Questions

Q1: Explain the concept of a monopsony and provide an example.

Q2: What is the key characteristic of perfect competition, and how does it affect pricing?

Q3: Differentiate between monopoly and monopolistic competition.

Q4: Explain what a natural monopoly is and provide an example.

Q5: Define the term "price taker" in the context of perfect competition.