What characteristics does Oligolopy

Large capital requirements or other factors limit the numbers of firms

Firms producing almost or all output

Firms producing little or no output

Large capital requirements or other factors help make it easy to make more firms

What are the main characteristics of oligopoly?

Few firms, interdependent, high barriers of entry

Few firms, independent, high barriers of entry

Many firms, interdependent, low barriers of entry

Many firm, independent, low barriers of entry

What is a collusive oligopoly?

Firms that act together to determine price or output

Firms produce homogeneous products

Firms that compete with each other in determining output

Firms that cheat to maximise profits

Oligopoly is a market structure characterized by:

strategic behavior between rival firms

independence in decision making

substantial diseconomies of scale

Oligopoly is a market structure that is characterized by a _____ number of ______ firms that produce _____ products.

small; interdependent; identical or differentiated

large; relatively small, independent; identical

small; independent; identical or differentiated

large; relatively small, independent; differentiated

small; independent; differentiated

The cartel model of oligopoly predicts that

all firms in the industry act in unison to set monopoly price

each producer acts independently of others

firms follow the low-price firm in the industry

differences in cost of production discourage individual firms from cheating

the markup on marginal cost should be the same for all firms

One of the assumptions underlying the kinked demand curve is that oligopolists

Expect their rivals to match any reduction in price

Sell to consumers who are less sensitive to price increases than price decreases

Leave their prices unchanged if a competitor reduces his price

Increase their prices in response to an increase in the price charged by a competitor

What would facilitate collusion between firms in an oligopolistic industry

An increase in the number of firms

Some of the firms in an industry agree to set the same price. What would threaten the continuation of the agreement?

differences in cost structures between firms

the inclusion of the dominant firm in the industry

significant barriers to enter into the industry

Which of these is not a feature of an oligopolistic market?

The number of firms is usually small

The diagram shows the cost and revenue curves of an oligopolist. In the initial situation, AC 1 is its average cost curve, MC 1 is its marginal cost curve and the firm is in equilibrium at output OQ and price OP. The cost of labour rises, so that AC 2 and MC 2 become the relevant cost curves. What should the firm do to maximise profit in this new situation?

Leave both price and output unchanged

Leave price unchanged and increased output

Raise price and leave output unchanged

a market is shared by a small number of producers or sellers.

market is controlled by 1 producer

a large company that has or attempts to gain monopolistic control of a market

Game theory is used to explain

strategic behavior of firms in oligopoly

how monopolies evolve into oligopolies

profit maximization in monopoly

price leadership of monopolistic competition

Based on the payoff matrix, which of the following is correct?

Firm A’s dominant strategy is to advertise.

Firm A always gets a smaller share of the industry profits.

Firm B’s dominant strategy is not to advertise.

The dominant strategy for both firms is not to advertise.

Neither firm has a dominant strategy.

One difference between oligopolies and monopolistically competitive markets is that

there are fewer firms in oligopolistic markets than in monopolistically competitive ones

there is no deadweight loss in monopolistically competitive markets, but there is in oligopolies

the products sold in monopolistically competitive markets are identical

oligopolies have fewer barriers to entry

firms maximize profits in monopolistically competitive markets but not in oligopolies

The concentration ratio measures the

Proportion of total output produced by the four largest producers in a specific market.

Number of plants owned by an oligopoly.

Percentage of total profits made by a firm in a specific market.

Relative size of a firm compared to other industries.

The goal of a company in an oligopoly industry is to

Increase market share and profits.

Obtain the highest price possible.

Always follow rivals if they raise price.

Be the market leader in innovation.

The following table shows the profits associated with the pricing strategies of two oligopolistic firms, Agronomia and Farmingdale. Each firm has two possible strategies: to charge a low price or a high price. The first entry in each cell shows the profits to Agronomia and the second the profits to Farmingdale. If the two firms do not cooperate, what will be the profit for each firm?

Agronomia = $100; Farmingdale = $100

Agronomia = $50; Farmingdale = $100

Agronomia = $150; Farmingdale = $150

Agronomia = $300; Farmindale = $50

E Soda and R Soda are the only two firms in the soft-drink industry. The companies cannot cooperate. Each firm can follow a high-price strategy or a low-price strategy for pricing its product. In the payoff, the first entry in each cell shows the profits to E Soda and the second entry shows the profits to R Soda. It can be concluded that:

Both firms will choose the low-price strategy

neither E Soda nor R Soda has a dominant strategy

E Soda has a dominant strategy but R Soda does not

Both firms will choose the high-price strategy

The cartel model of oligopoly predicts that:

all the firms in the industry act in unison to set a monopoly price

each producer acts independently of others

firms follow the low-price firm in the industry

differences in cost of production discourage individual firms from cheating

Game theory is used to explain

strategic behavior of firms in oligopoly

how monopolies evolve into oligopolies

profit maximization in monopoly

price leadership of monopolistic competition

What is the most predictable outcome in the Prisoner's Dilemma?

both will testify against each other

both prisoners will remain silent

prisoner A will testify against prisoner B

prisoner B will testify against prisoner A

Game theory reveals that

the equilibrium might not be the best solution for the parties involved.

each player looks after what is best for the industry.

firms in an oligopoly are not interdependent.

firms in an oligopoly choose their actions without regard for what other firms might do.

if all firms in an oligopoly take the action that maximizes their profit, then the equilibrium will have the largest combined profit of all the firms.

IB Economics HL-Oligopoly

10th - 12th Grade

•

71 Qs

Similar activities

Chapter 6--Executive Branch

11th - 12th Grade

•

73 Qs

World Religion Test

9th - 12th Grade

•

70 Qs

2.7 QUIZ: WH Unit 2 Review

9th - 12th Grade

•

75 Qs

Exploration & Discovery Honors World History Study Guide

10th Grade

•

75 Qs

Medicine - Medieval to Industrial

11th Grade

•

76 Qs

Unit 2 Review

12th Grade

•

70 Qs

Judicial Branch

9th - 12th Grade

•

75 Qs

Early Humans Practice Test Questions

6th Grade - University

•

70 Qs

IB Economics HL-Oligopoly

Quiz

•

Social Studies

•

10th - 12th Grade

•

Practice Problem

•

Medium

David smith

Used 53+ times

FREE Resource

71 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Create a free account and access millions of resources

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

71 questions

Unit 1 Review

Quiz

•

8th - 12th Grade

66 questions

AP Psychology – Unit 5: Cognition Quiz

Quiz

•

9th - 12th Grade

75 questions

Academic vocabulary MASTER LIST

Quiz

•

6th - 10th Grade

75 questions

US History 1st Semester Review

Quiz

•

11th Grade

75 questions

APWH Unit 1-2

Quiz

•

10th Grade

68 questions

Articles of the Constitution

Quiz

•

10th Grade

70 questions

Oh Snap Final!!!!!

Quiz

•

11th Grade

75 questions

Government Final Exam

Quiz

•

12th Grade

Popular Resources on Wayground

10 questions

Honoring the Significance of Veterans Day

Interactive video

•

6th - 10th Grade

9 questions

FOREST Community of Caring

Lesson

•

1st - 5th Grade

10 questions

Exploring Veterans Day: Facts and Celebrations for Kids

Interactive video

•

6th - 10th Grade

19 questions

Veterans Day

Quiz

•

5th Grade

14 questions

General Technology Use Quiz

Quiz

•

8th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

15 questions

Circuits, Light Energy, and Forces

Quiz

•

5th Grade

19 questions

Thanksgiving Trivia

Quiz

•

6th Grade

Discover more resources for Social Studies

21 questions

Unit 05 WH EOU Review: Medieval Interactions and Diffusion

Quiz

•

10th Grade

20 questions

Unit 4.3 Renaissance Quiz

Quiz

•

10th Grade

17 questions

Islam and China Test Review

Quiz

•

11th Grade

24 questions

Unit 6: Standard #1 GDP

Quiz

•

12th Grade

10 questions

Exploring the Age of Exploration: Key Events and Figures

Interactive video

•

6th - 10th Grade

20 questions

Unit 6 Judicial Branch

Quiz

•

9th - 12th Grade

20 questions

Mastery Quiz: SSUSH 20/21

Quiz

•

11th Grade

35 questions

Russia Quiz

Quiz

•

9th - 12th Grade