oligopolies IB

An extreme case of oligopoly in which firms collude to raise joint profits is known as a:

• duopoly

• cartel

• dominant producer

• price war

• price leadership

In which of the following market structures is it sometimes assumed that rival firms will match price decreases but not match price increases?

• Perfect competition

• Oligopoly

• Natural Monopoly

• Monopolistic Competition

• Monopoly

What is the equilibrium of the below game?

• A,X
• A,Y
• B,X
• B,Y

Which market structure has the MOST competition?

• oligopoly
• monopoly
• perfect competition
• monopolistic competition

Which of the following usually results from colluding firms? 

• more is produced
• profit decreases
• prices are higher
• more firms enter the market

A distinguishing feature of oligopoly is that

• The firms do not attempt to maximise profits

• The firms are faced by perfectly inelastic demand curves

• The firm's pricing or output decisions are interdependent

• No firm can raise price above long - run average cost

Which of the following usually results from colluding firms?

• Less is produced

• Profit decreases

• Prices are higher

A kinked demand curve indicates that rival oligopolists match all

• Increased advertising.

• Advertising reductions.

• Price increases.

• Price reductions.

The study of how decisions are made when strategic interaction between firms exists is known as

• Game theory.

• Contestable market theory.

• Market power theory.

• Predatory pricing theory.

Which of the following is NOT a Market Structure?

• Perfect Competition

• Oligopoly

• Monopoly

• Corporation