MCQs of Economics – Oligopoly

If a few firms dominate an industry the market is known as:

In a cartel member firms may be given a fixed amount to produce. This is called a:

In the kinked Demand Curve theory it is assumed that:

The Kinked Demand curve theory assumes:

In Game Theory:

In the Kinked demand curve theory:

Firms in oligopoly are likely to:

A model of Game theory of oligopoly is known as the:

In cartels:

In a cartel:

The market for hand tools (such as hammers and screwdrivers) is dominated by Draper Stanley, and Craftsman This market is best described as:

A market structure in which many firms sell products that are similar but not identical is known as:

If oligopolists engage in collusion and successfully from a cartel, the market outcome is

Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist:

As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like:

When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is:

When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is:

As the number of sellers in an oligopoly increases

A situation in which oligopolists interacting with one another each choose their best strategy given the strategies that all the other oligopolists have chosen is known as a:

Many economics argue that resale price maintenance:

Collusion is difficult for an oligopoly to maintain

Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total:

Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of:

Laws that make it illegal for firms to conspire to raise prices or reduce production are known as: