Econ

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

The market for crude oil is an example of an oligopolistic market

• TRUE

• FALSE

The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market

• TRUE

• FALSE

The greater the number of firms in the oligopoly, the more the outcome of the market looks like that generated by a monopoly

• TRUE

• FALSE

When oligopolists collude and form a cartel, the outcome in the market is similar to that generated by a perfectly competitive market

• TRUE

• FALSE

If oligopolists engagein collusion and successfully form a cartel, the market outcome is

• the same as if it were served by a monopoly

• The same as if it were served by competitive firms

• The same as if it were served by competitive firms

• Known as Nash equilibrium

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

T or F Would Pepsi and Coke conspire together to make prices?

• True

• False

What do all oligopolies combined dictate?

• market and competition

• supply and demand

• prices and demand

Which are some of oligopolistic models?

• Cartel model

• Dynamic model

• Jenner model

• Cournot mode