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Oligopoly

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

How many firms are there in an oligopoly?

a)

Many

b)

Few

c)

One

d)

Eight

2.

Are price wars an advantage or disadvantage?

a)

Disadvantage

b)

Advantage

3.

What type of firms dominate in an oligopoly?

a)

Small firms

b)

Large firms

c)

Start-ups

4.

Which of these is an example of oligopoly

a)

Paper Clips

b)

Chips

c)

Luxury Cars

d)

DEWA

5.

Why are collusions made?

a)

To restrict competition

b)

To increase choice

c)

To introduce new entrants

d)

None of the above

6.

Which of the following is not a feature of an oligopoly

a)

Collusion

b)

Barriers to Entry

c)

One firm dominates

d)

Different Products

7.

What do firms in a cartel do?

a)

Join together and agree on price or output upon colluding

b)

They compete against each other

c)

Both

8.

It is very easy to enter an oligopolistic market. True or False?

a)

True

b)

False

9.

When firms attain economies of scale, their average costs will____.

a)

Not change

b)

Increase

c)

Decrease

d)

All of the above

10.

Which of the following is a possible disadvantage of oligopoly

a)

More choice

b)

Innovation

c)

Economies of Scale

d)

Collusion

11.

Smaller rivals in the market often survive because...

a)

They do not compete directly with dominant firms,

b)

They are small

c)

No one knows them

12.

Choice is an advantage for oligopolistic markets

a)

True

b)

False

13.

Firms in an oligopoly are interdependent, so if one firm cuts the price, others are_____.

a)

raise prices

b)

forced to follow

c)

not likely to follow

d)

stay the same

14.

Would consumers benefit if there is competition between firms in an oligopolistic market?

a)

Yes

b)

No

15.

Which of these is a feature of an oligopoly?

a)

Innovation

b)

Few firms dominate

c)

Economies of Scale

d)

Price wars