Oligopoly means:___________?

Related Mcqs:

1. 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

2. An oligopoly with a dominant price leader will produce a level of output ?

   A. equal to what a monopolist would choose in the same industry
   B. between that which would prevail under competition and that which a monopolist would choose in the same industry
   C. that would prevail under competition
   D. between that which would prevail under competition and that which a monopolistic competitor would choose in the same industry.

3. 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

4. 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

5. 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

6. 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

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. 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

10. Endorsement means anything written upon the back of the document What does means by Endorse ?

    A. To verify signature
    B. To verify the person holding cheque
    C. To sign one’s name upon the back of cheque
    D. To sign one’s name upon the front of cheque