Econ 7-3 review mod

What is monopolistic competition?

• A market with a single seller
• A market with many sellers offering similar but not identical products
• A market dominated by a few large sellers
• A market with no competition

What does differentiation refer to in economics?

• Making products slightly different to stand out
• Selling products at the same price
• Making products identical to competitors'
• Removing all variations in products

What is nonprice competition?

• Competing by offering lower prices
• Competing through product features and advertising
• Competing by offering higher prices
• Competing by not changing anything

What is an oligopoly?

• A market with many small sellers
• A market dominated by a few large sellers
• A market with no sellers
• A market with a large number of buyers and sellers

What is a price war?

• A competition to raise prices
• A competition to lower prices
• A competition to maintain the same prices
• A competition to ignore prices

What does collusion mean in a market context?

• Secretly agreeing to set prices or market conditions
• Competing aggressively against each other
• Collaborating to create new products
• Publicly announcing price increases

What is price fixing?

• When companies agree to sell products at a set price
• When a company lowers prices to attract customers
• When companies independently set prices
• When prices are determined by customer demand

What is a cartel?

• A single business that controls an entire market
• A group of businesses that agree to control prices and production
• An organization that sells illegal goods
• A competitive market with many sellers

What is the main goal of differentiation in monopolistic competition?

• To create a unique product to attract more customers
• To reduce production costs
• To make products identical to competitors'
• To ignore consumer preferences

In an oligopoly, what is a common characteristic among the firms?

• They operate independently without any coordination
• They work together to set prices
• They continuously lower prices to outdo each other
• They have no impact on market prices