Understanding Oligopoly

The video tutorial discusses the concept of oligopoly, highlighting its characteristics such as high capital requirements, limited competition, and strategic market control. It explains the two types of oligopoly markets: pure and differentiated, based on product nature. Examples from the Philippines, like the gasoline and cement industries, illustrate oligopoly in practice. The tutorial emphasizes the need for firms to dominate the market to maintain their position.

What is a key characteristic of businesses in an oligopoly market?

• They are technology-savvy.

• They have low capital requirements.

• They face high competition.

• They are price takers.

Which of the following best describes a pure oligopoly?

• Firms face many competitors.

• Firms have no market power.

• Firms sell unique products.

• Firms sell identical products.

In a differentiated oligopoly, how are the products characterized?

• Standardized

• Non-existent

• Heterogeneous

• Identical

Which industry in the Philippines is an example of an oligopoly?

• Tourism

• Agriculture

• Gasoline

• Textile

What is a common strategy for firms in an oligopoly to maintain their market position?

• Ignoring competitors

• Dominating the market

• Lowering prices drastically

• Reducing product quality

How is oligopoly positioned between capitalism and monopoly?

• It is unrelated to both.

• It is a middle ground.

• It is closer to monopoly.

• It is closer to capitalism.

Which company is mentioned as part of an oligopoly in the video?

• Google

• Banco de Oro

• Samsung

• Apple