Understanding Oligopoly

Which two companies dominate the smartphone operating systems market?

• Apple and Microsoft

• Google and Samsung

• Microsoft and Samsung

• Apple and Google

What is a key characteristic of an oligopoly?

• No barriers to entry

• Many small firms

• A single dominant firm

• A few large firms

How do oligopolistic firms often compete?

• By reducing quality

• By increasing production

• Through non-price strategies

• Through price wars

What is a common feature of oligopolistic markets regarding prices?

• Constant price wars

• No price competition

• Price rigidity

• Frequent price changes

Which industry is NOT mentioned as an example of an oligopoly?

• Pharmaceuticals

• Automobiles

• Social Media

• Semiconductors

Which industry benefits from network effects, making it difficult for new entrants?

• Beverages

• Pharmaceuticals

• Social Media

• Semiconductors

What is one benefit of oligopolies related to production costs?

• Increased production costs

• Economies of scale

• Decreased innovation

• Higher consumer prices

What is a potential benefit of oligopolies related to product development?

• Product innovation

• Limited consumer choice

• Decreased product quality

• Less investment in R&D

Which of the following is a potential cost of oligopolies?

• Lower prices

• Increased consumer choice

• Potential for collusion

• No barriers to entry

What can high barriers to entry in an oligopoly lead to?

• Increased competition

• More market entrants

• Limited competition

• Lower prices