Oligopoly Pricing Models Quiz
Discover key pricing models in oligopoly economics. Learn about collusion, price competition, Cournot and Bertrand models, and more.
#1
In an oligopoly market, firms often engage in price competition to gain market share. What is this behavior called?
Price leadership
Price discrimination
Price signaling
Price war
#2
Which pricing model suggests that oligopolistic firms might collude to act like a monopoly?
Nash equilibrium
Stackelberg model
Cournot model
Price leadership
#3
Which of the following is NOT a characteristic of oligopoly?
Few large firms dominate the market
Product differentiation may exist
Perfect competition
High barriers to entry
#4
Which pricing model assumes that firms have complete information about their competitors' strategies and react accordingly?
Cournot model
Stackelberg model
Bertrand model
Nash equilibrium
#5
In oligopoly, what is the term used to describe a situation where firms match each other's price changes?
Price war
Price collusion
Price signaling
Price matching
#6
What strategy involves one firm undercutting its competitors' prices in an attempt to increase market share?
Predatory pricing
Price leadership
Cartelization
Price discrimination
#7
What is the main assumption in the Cournot model of oligopoly?
Firms collude to maximize joint profits
Firms produce the same quantity simultaneously
Firms compete by setting prices simultaneously
Firms engage in sequential decision-making
#8
Which pricing model in oligopoly assumes that firms set their quantities simultaneously and independently?
Stackelberg model
Cournot model
Bertrand model
Nash equilibrium
#9
What is the key assumption of the Bertrand model in oligopoly?
Firms have perfect information about rivals' prices
Firms compete by setting quantities simultaneously
Firms engage in sequential decision-making
Firms have different production technologies
#10
What is the primary drawback of the kinked demand curve model in oligopoly?
It assumes perfect information
It cannot explain price rigidity
It does not consider market concentration
It overlooks product differentiation
#11
Which pricing model in oligopoly assumes that one firm sets its quantity first, followed by the other firms adjusting their quantities accordingly?
Cournot model
Stackelberg model
Bertrand model
Nash equilibrium
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