#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 primary goal of price leadership in oligopoly?
To maximize market share
To set prices at the lowest possible level
To coordinate prices within the industry
To engage in price discrimination
#8
Which of the following is NOT a barrier to entry in an oligopoly market?
Economies of scale
Brand loyalty
Perfect information
Government regulations
#9
Which of the following is a potential outcome of the Bertrand model in oligopoly?
Perfect collusion
Price competition
Quantity competition
Stackelberg equilibrium
#10
Which pricing model suggests that firms compete by choosing quantities simultaneously, assuming rivals' quantities remain unchanged?
Cournot model
Stackelberg model
Bertrand model
Nash equilibrium
#11
In oligopoly, what is a tacit collusion?
An explicit agreement among firms to fix prices
A situation where firms follow each other's price changes without any formal agreement
A government-imposed price control
A situation where firms engage in predatory pricing
#12
Which pricing model in oligopoly assumes that firms set prices simultaneously and independently?
Cournot model
Stackelberg model
Bertrand model
Nash equilibrium
#13
In oligopoly, what does the term 'price leadership' refer to?
A situation where one firm sets prices and others follow
A government-imposed price control
A form of price discrimination
A situation where firms engage in price wars
#14
Which of the following is a strategy used in oligopoly to deter entry of new competitors by temporarily lowering prices below costs?
Price leadership
Predatory pricing
Collusion
Price discrimination
#15
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
#16
Which pricing model in oligopoly assumes that firms set their quantities simultaneously and independently?
Stackelberg model
Cournot model
Bertrand model
Nash equilibrium
#17
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
#18
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
#19
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
#20
In the kinked demand curve model, what assumption explains why firms maintain prices even if marginal costs change?
Firms are risk-averse
Firms have perfect information
Firms face symmetric reactions to price changes
Firms engage in non-price competition
#21
What is the main difference between collusion and price leadership in oligopoly?
Collusion involves legal agreements, while price leadership doesn't
Price leadership aims to maximize joint profits, while collusion aims to maximize individual profits
Collusion requires government intervention, while price leadership doesn't
Price leadership leads to price stability, while collusion leads to price volatility
#22
What is the primary assumption of the kinked demand curve model in oligopoly?
Firms have identical cost structures
Firms engage in perfect competition
Demand is perfectly elastic
Rivals will match price cuts but not price increases
#23
What is the main limitation of the Cournot model in predicting real-world outcomes in oligopoly?
It assumes perfect information
It does not consider product differentiation
It overlooks the potential for collusion
It cannot account for sequential decision-making
#24
What is the key assumption of the Cournot model in oligopoly?
Firms have perfect information about rivals' strategies
Firms set quantities simultaneously
Firms engage in price leadership
Firms collude to maximize joint profits
#25
What is the main assumption of the Nash equilibrium in oligopoly?
Firms have perfect information about rivals' strategies
Firms set quantities simultaneously
Firms maximize individual profits
Firms engage in price discrimination