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WorksheetsEcon
Total questions: 17
Worksheet time: 10mins
Which of the following best describes an oligopoly?
many monopolistically competitive firms
a few firms sharing monopoly power
a former monopoly that has been broken up by the government
a government-granted franchise or monopoly
The market for crude oil is an example of an oligopolistic market
TRUE
FALSE
The unique feature of an oligopoly market is that the actions of one seller have a significant impact on the profits of all of the other sellers in the market
TRUE
FALSE
The greater the number of firms in the oligopoly, the more the outcome of the market looks like that generated by a monopoly
TRUE
FALSE
When oligopolists collude and form a cartel, the outcome in the market is similar to that generated by a perfectly competitive market
TRUE
FALSE
If oligopolists engagein collusion and successfully form a cartel, the market outcome is
the same as if it were served by a monopoly
The same as if it were served by competitive firms
The same as if it were served by competitive firms
Known as Nash equilibrium
Collusion is difficult for an oligopoly to maintain
Because antitrust laws make collusion illegal
Because, in the case of oligopoly, self-interest is in conflict with cooperation
If additional firms enter of the oligopoly
For all the above reasons
T or F Would Pepsi and Coke conspire together to make prices?
True
False
What do all oligopolies combined dictate?
market and competition
supply and demand
prices and demand
Which are some of oligopolistic models?
Cartel model
Dynamic model
Jenner model
Cournot mode
Which of the following industries are Oligopolies?
telecom
oil & gas
clothes industry
farming industry
One difference between oligopolies and monopolistically competitive markets is that
there is no deadweight loss in monopolistically competitive markets, but there is in oligopolies
the products sold in monopolistically competitive markets are identical
oligopolies have fewer barriers to entry
firms maximize profits in monopolistically competitive markets but not in oligopolies
there are fewer firms in oligopolistic markets than in monopolistically competitive ones
The demand curve for a monopolistically competitive firm is downward sloping because
there are a large number of firms
the product is produced by using scarce resources
the products produced by different firms are not identical
it is easy for firms to enter or exit the market
the marginal cost rises as output produced increases
