#1
Which characteristic best describes an oligopoly market?
Many small firms
Few large firms
Perfect competition
Monopoly
#2
What is a key feature of oligopoly market structure?
Price taker
Price maker
Price follower
Price controller
#3
Which market structure is characterized by a small number of interdependent firms?
Monopoly
Oligopoly
Monopolistic competition
Perfect competition
#4
What is a characteristic of a duopoly market structure?
Two firms dominate the market
Many small firms compete
Single firm controls the market
Government regulates prices
#5
What term describes a situation where firms in an oligopoly compete by focusing on non-price factors such as advertising and product differentiation?
Price leadership
Non-collusive oligopoly
Monopolistic competition
Barriers to entry
#6
Which industry is most commonly associated with oligopoly?
Agriculture
Electricity production
Automobile manufacturing
Local retail stores
#7
What is the 'kinked demand curve' model often used to explain in oligopoly?
Demand for luxury goods
Stability of prices
Price rigidity
Demand elasticity
#8
Which concept describes a situation where firms in an oligopoly mimic each other's actions?
Game theory
Nash equilibrium
Tit-for-tat
Prisoner's dilemma
#9
What is a typical barrier to entry in an oligopoly market?
Low initial investment
High level of competition
Economies of scale
Perfect information
#10
What term refers to a situation where firms in an oligopoly differentiate their products to appeal to different market segments?
Monopolistic competition
Product differentiation
Perfect competition
Homogeneous products
#11
What is a common strategy used by firms in oligopoly to differentiate their products?
Cost leadership
Price discrimination
Product differentiation
Perfect competition
#12
What strategy is commonly used by firms in oligopoly to maintain market share?
Collusion
Perfect competition
Price leadership
Price discrimination
#13
What is a characteristic of a 'collusive' oligopoly?
High level of competition
Firms work together to set prices
Frequent price wars
Perfect information
#14
What is a potential drawback of price leadership in oligopoly?
Increased competition
Improved market stability
Risk of collusion
Price rigidity
#15
What is a potential disadvantage of collusion in an oligopoly?
Increased market stability
Enhanced consumer welfare
Risk of antitrust violations
Encourages healthy competition
#16
What is a potential drawback of price discrimination in oligopoly?
Increased consumer surplus
Risk of legal challenges
Improved market efficiency
Enhanced price transparency
#17
What is a potential consequence of a price war in oligopoly?
Increased profits for all firms
Stability in the market
Market exit for weaker firms
Formation of a monopoly