Oligopoly and Market Structures Quiz

Which of the following Bhutanese industries is an example of a differentiated oligopoly?

• Cement industry

• Telecommunications industry

• Hydropower industry

• Mining industry

What is a key characteristic of an oligopoly market?

• Perfect information

• Large number of buyers and sellers

• High barriers to entry

• Uniform pricing

In a kinked demand curve, why is the upper portion more elastic?

• Firms produce less

• Consumers prefer expensive goods

• Consumers will switch to competitors

• Rivals also raise their prices

Which of the following would be an example of non-price competition?

• Reducing the product price

• Offering free delivery and brand promotion

• Colluding with other firms

• Halting production

Why does price rigidity occur in an oligopoly?

• Lack of government regulation

• Firms have no control over price

• Firms fear customer loss or profit margin cuts

• Perfect competition forces prices to stay low

In an oligopoly, the few dominant firms are said to be ____________ in their decisions.

In the kinked demand curve model, a price decrease leads to __________ change in quantity demanded.

Bhutan's cement industry is best categorized under ___________ oligopoly.

Firms in a collusive oligopoly behave like a _____________.

In an oligopoly, price and output remain unchanged if MC shifts within the __________ in MR curve.