Collusion is difficult for an oligopoly to maintain ?

Related Mcqs:

1. If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?

   A. the same as if it were served by competitive firms.
   B. efficient because cooperation improves efficiency
   C. the same as if it were served by a monopoly.
   D. known as a Nash equilibrium

2. To maintain that South koreans are dumping their DVDs in the United States is to maintain that ?

   A. Koreans are selling DVDs in the U.S below their production cost
   B. Koreans are selling DVDs is the U.s above their productions cost
   C. The cost of manufacturing DVDs in Korea is lower in Korea than in the U.S since wages are lower in Korea
   D. The cost of manufacturing DVDs in Korea is higher in Korea than in the U.S since wages are higher in Korea

3. 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

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

   A. monopoly
   B. a competitive market
   C. monopolistic competition
   D. a collusion solution

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

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

6. 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

7. Assume that firms in an oligopoly are currently colluding to set price and output to maximise total industry profit. If the oligopolists are forced to stop colluding, the price charged by the oligopolists will _________ and the total output produced will __________?

   A. decrease; decrease
   B. increase; decrease
   C. decrease; increase
   D. increase; increase

8. A major weakness of the kinked demand curve model of oligopoly is that ?

   A. it assumes that firms believe that their rivals will not respond to any price change they initiate
   B. it fails to explain how a firm arrived at its price and output decision initially
   C. The model cannot be tested empirically.
   D. Real-world pricing strategies are more simple than those assumed in this model

9. The kinked demand curve model of oligopoly assumes the elasticity of demand ?

   A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
   B. is perfectly elastic if price increases and perfectly inelastic if price decreases
   C. is constant regardless of whether price increase of decrease.
   D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease

10. Oligopoly means:___________?

    A. Business by rich people
    B. Monopoly shared by few large sellers
    C. Just one supplier of an item
    D. None of the above

    Submitted by: HYDER ALI ANSARI