Understanding Oligopolies

The video explores oligopolies, markets dominated by a few sellers. It explains the Greek origin of the term and how oligopolies can behave like monopolies through coordination, known as collusion. OPEC is highlighted as a major cartel in the oil industry. The video also discusses competitive oligopolies like Coke and Pepsi, and duopolies such as Boeing and Airbus. It concludes with examples of oligopolies approaching perfect competition, like airlines.

What does the term 'oligopoly' mean in its Greek origin?

• Few sellers

• Many sellers

• No sellers

• Single seller

What is the term used when companies in an oligopoly coordinate to restrict output and raise prices?

• Collusion

• Monopoly

• Diversification

• Competition

Which organization is a well-known example of a cartel in the oil industry?

• OPEC

• UNESCO

• IMF

• NATO

What is a major challenge for maintaining a cartel?

• Too many members

• Incentive for members to secretly break agreements

• Government support

• Lack of resources

Which two companies are examples of a duopoly in the commercial aircraft industry?

• Ford and Toyota

• Coke and Pepsi

• Boeing and Airbus

• Visa and MasterCard

What is the term for an oligopoly with only two major players?

• Monopoly

• Quadropoly

• Duopoly

• Triopoly

Which industry is given as an example of an oligopoly that behaves like a perfectly competitive market?

• Pharmaceuticals

• Airlines

• Telecommunications

• Automobile

Which two companies dominate the credit card network market?

• American Express and Discover

• Chase and Bank of America

• PayPal and Square

• Visa and MasterCard

Why do governments regulate oligopolies?

• To increase prices

• To promote collusion

• To reduce competition

• To push towards perfect competition

What is the benefit of moving closer to perfect competition in a market?

• Less consumer choice

• Higher prices for consumers

• More efficient production

• Increased monopoly power