Oligopoly

How might an oligopoly control prices?

• Collusion

• Price leadership

• Nonprice competition

• All of the above

Differentiation is _________________.

• having identical products.

• copying another business.

• small differences that make your product unique.

• having control of the market value.

Car producers are an example of

• monopoly

• oligopoly

• monopolistic competition

• pure / perfect competition

Which of the following best describes an oligopoly?

• many monopolistically competitive firms

• a few firms sharing monopoly power

• a former monopoly that has been broken up by the government

• a government-granted franchise or monopoly

Collusion most frequently occurs in industries that are

• oligopolistic

• monopolistically competitive

• monopolistic

• perfectly competitive

Collusion is difficult for an oligopoly to maintain

• Because antitrust laws make collusion illegal

• Because, in the case of oligopoly, self-interest is in conflict with cooperation

• If additional firms enter of the oligopoly

• For all the above reasons

conspiring among business to set the prices of competing production

• pricing fixing
• trust
• market share
• oligopoly