A. monopolistically competitive
B. a monopoly
C. an oligopoly
D. competitive
Economics Mcqs
If oligopolists engage in collusion and successfully from a cartel, the market outcome is ?
A. the same as if it were served by competitive firms.
B. efficient because cooperation improves efficiency
C. the same as if it were served by a monopoly.
D. known as a Nash equilibrium
As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
A. monopoly
B. a competitive market
C. monopolistic competition
D. a collusion solution
When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?
A. more than the price charged by either monopoly or a competitive market
B. less than the price charged by either monopoly or a competitive market
C. more than the price charged by a monopoly and less then the price charged by a competitive market
D. less than the price charged by a monopoly and more than the price charged by a competitive market
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 ?
A. Nash equilibrium
B. dominant strategy.
C. cartel
D. collusion solution
Collusion is difficult for an oligopoly to maintain ?
A. all of these answers
B. if additional firms enter of the oligopoly
C. because antitrust laws (also known as competition laws) make collusion illegal
D. because, in the case of oligopoly self-interest is in conflict with cooperation.
Laws that make it illegal for firms to conspire to raise prices or reduce production are known as ?
A. antimonopoly laws
B. all of these answers
C. anti-collusion laws
D. pro-competition laws
E. antitrust laws
In a cartel member firms may be given a fixed amount to produce. This is called a ?
A. Limit
B. Factor
C. Quota
D. Quotient
The Kinked Demand curve theory assumes ?
A. Firms cooperate
B. Firms act as part of cartel
C. Firms are competitive
D. Firms are not profit maximisers