#1
Which of the following is a characteristic of an oligopoly market?
Numerous small firms
Single seller dominating the market
Few large firms
Perfect competition
#2
Which of the following is NOT a barrier to entry in an oligopoly market?
Economies of scale
Government regulations
Product differentiation
Perfect information
#3
What is a strategic behavior commonly observed in oligopoly markets?
Price discrimination
Predatory pricing
Perfect competition
Monopolistic competition
#4
Which of the following is NOT a source of market power in oligopoly?
Patents and copyrights
Government subsidies
Technological superiority
Perfect information
#5
Which of the following is a characteristic of a homogeneous product in oligopoly?
Unique branding
Product differentiation
Identical products
Variable pricing
#6
What is the primary goal of firms in an oligopoly market?
Maximize consumer welfare
Minimize competition
Maximize profits
Promote perfect competition
#7
What is the primary feature that distinguishes oligopoly from other market structures?
Product differentiation
Price discrimination
Interdependence among firms
Free entry and exit
#8
In an oligopoly, firms are likely to engage in collusion to:
Maximize consumer welfare
Minimize profits
Maximize individual profits
Increase competition
#9
What is a characteristic of a Nash equilibrium in oligopoly?
It represents a stable outcome
It guarantees maximum profit for all firms
It involves collusion among firms
It leads to perfect competition
#10
Which model of oligopoly involves firms setting their quantities simultaneously?
Stackelberg model
Cournot model
Bertrand model
Kinked demand curve model
#11
What is a characteristic of a cartel in an oligopoly?
It promotes competition
It is legal in most jurisdictions
It involves collusion among firms
It leads to perfect competition
#12
Which model of oligopoly assumes firms compete by setting prices rather than quantities?
Stackelberg model
Cournot model
Bertrand model
Kinked demand curve model
#13
Which model of oligopoly assumes that firms act independently and are only influenced by their own actions?
Stackelberg model
Cournot model
Bertrand model
Kinked demand curve model
#14
The kinked demand curve model of oligopoly suggests that firms face:
Elastic demand curve
Inelastic demand curve
Discontinuous demand curve
A gap in demand curve
#15
What is the key assumption of the Bertrand model of oligopoly?
Firms maximize quantity sold
Firms engage in price competition
Firms collude to maximize profits
Firms have differentiated products
#16
In the Stackelberg model, which firm sets its quantity or price first?
The follower firm
The leader firm
Both firms simultaneously
Neither firm
#17
What does the kinked demand curve model of oligopoly suggest about price changes?
Price changes are always matched by competitors
Price changes lead to a shift in market demand
Price changes are ignored by competitors
Price changes are countered asymmetrically
#18
What does the Bertrand model of oligopoly suggest about the pricing behavior of firms?
Firms compete on quantity
Firms compete on price
Firms engage in collusion
Firms ignore pricing strategies