Micro - Oligopoly

In an oligopoly market structure, how many sellers are typically present?

• A small number of sellers
• Only one seller
• A large number of sellers
• No sellers

What is the potential for profit in an oligopoly market in the long run?

• Maintain some profit
• Low profit like in perfect competition
• High profit like a monopoly
• No profit at all

What happens to quantity demanded when an oligopolistic firm increases its price and no rivals follow suit?

• Large decrease in quantity demanded
• No change in quantity demanded
• Quantity demanded becomes elastic
• Small increase in quantity demanded

What does the demand curve look like for an oligopolistic firm?

• Kinked demand curve
• Upward-sloping demand curve
• Downward-sloping demand curve
• Straight-line demand curve

How does an oligopolistic firm determine the profit-maximizing output?

• Where marginal revenue equals marginal cost
• Where marginal revenue is highest
• Where average revenue equals average cost
• Where marginal cost is lowest

How do average cost curves impact an oligopolistic firm's short-run profitability?

• It can make money, lose money, or break even
• Always lose money
• Always make money
• Only break even

What protects profits in an oligopoly market structure in the long run?

• Barriers to entry
• Low prices
• Government regulations
• High competition

How do oligopoly profits compare to monopoly profits?

• Not as high as monopoly profits
• The same as monopoly profits
• Lower than perfect competition profits
• Higher than monopoly profits

What happens when firms in an oligopoly act like a single large firm in order to boost profits?

• Attempt to form a monopoly
• Exit the market
• Merge into one company
• Compete aggressively

What is the unique characteristic of an oligopoly market that makes it complex?

• Mutual interdependence among firms
• No competition
• Fixed prices
• Unlimited sellers