As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?

Related Mcqs:

1. As the number of sellers in an oligopoly increases ?

   A. output in the market tends to fall because each firm must cut back on production
   B. the price in the market moves further from marginal cost
   C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects
   D. The price in the market moves closer to marginal cost

2. If two countries start with the same real GDP/person and one country grows at 2 percent while the other grows at 4 percent ?

   A. one country will always have 2 percent more real GDP/person than the other
   B. the standard of living in the country growing at 4 percent will start to accelerate away from the slower growing country due to compound growth
   C. the standard of living in the two countries will converge
   D. Next year the country growing at 4 percent will have twice the GDP/person as the country growing at 2 percent

3. In contestable markets, large oligopolistic firms, end up behaving like ?

   A. perfectly competitive firms
   B. a cartel
   C. a monopoly
   D. monopolistically competitive firms.

4. In contestable markets large oligopolistic firms end up behaving like ?

   A. monopolistically competitive firms
   B. a cartel
   C. perfectly competitive firms
   D. a monopoly.

5. According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?

   A. created stationary economies of scale
   B. maintained the relationship between firms and their clients
   C. replaced price as the important
   D. limited the expansion of firms

6. Firms in oligopoly are likely to ?

   A. Invest heavily in branding
   B. Act independently of other firms
   C. Try to differentiate its products
   D. Try to be a price maker

7. Collusion is difficult for an oligopoly to maintain ?

   A. all of these answers
   B. if additional firms enter of the oligopoly
   C. because antitrust laws (also known as competition laws) make collusion illegal
   D. because, in the case of oligopoly self-interest is in conflict with cooperation.

8. A model of Game theory of oligopoly is known as the ?

   A. Prisoner’s Dilemma
   B. Monopoly Cell
   C. Jailhouses Sentences
   D. Jury Box

9. In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?

   A. choose a price below the market equilibrium price
   B. allow the market to seek equilibrium on its own.
   C. Choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).
   D. choose a price above the market equilibrium price

10. The burden of a tax falls more heavily on the sellers in a market when ?

    A. both supply and demand are elastic
    B. both supply and demand are inelastic
    C. demand is inelastic and supply in elastic
    D. demand is elastic, and supply is inelastic