Barriers to Entry in Oligopolistic Markets

What is multiple branding in oligopolistic markets?

• When two or three major companies sell a range of different products to give the illusion of choice

• When two or three major companies collaborate to raise the price of a good or service

• When businesses sell the same product at different prices to different people

• When a larger firm lowers prices to eliminate smaller competitors

What is collusion in oligopolistic markets?

• When two businesses work together to artificially raise the price of a good or service

• When businesses sell the same product at different prices to different people

• When a larger firm lowers prices to eliminate smaller competitors

• When businesses restrict supply to raise prices

What is market zoning in collusion?

• When businesses split the market in half and agree not to compete against each other

• When businesses sell the same product at different prices to different people

• When businesses restrict supply to raise prices

• When businesses work together to artificially raise the price of a good or service

What is collusive bidding?

• When businesses take turns bidding on a product to keep prices higher

• When businesses split the market in half and agree not to compete against each other

• When businesses restrict supply to raise prices

• When businesses work together to artificially raise the price of a good or service

What is price discrimination?

• When a business sells the same product at different prices to different people

• When businesses take turns bidding on a product to keep prices higher

• When businesses restrict supply to raise prices

• When businesses work together to artificially raise the price of a good or service

What is predatory pricing?

• When a business sells at lower prices to eliminate competition and then raises prices to generate more profits

• When businesses take turns bidding on a product to keep prices higher

• When businesses restrict supply to raise prices

• When businesses work together to artificially raise the price of a good or service

What is the reason collusion can occur in oligopolies?

• Because there are only a few main sellers and consumers still prefer the dominant brands

• Because businesses split the market in half and agree not to compete against each other

• Because businesses take turns bidding on a product to keep prices higher

• Because businesses sell the same product at different prices to different people

Why is price discrimination common in public transport and cinema tickets?

• Because services cannot be passed on to others, unlike goods

• Because businesses split the market in half and agree not to compete against each other

• Because businesses take turns bidding on a product to keep prices higher

• Because businesses sell the same product at different prices to different people

What is the strategy used by oligopolists to maximize profits?

• Predatory pricing

• Multiple branding

• Collusion

• Price discrimination