Questions on Oligopoly
Chapter 16
Oligopoly
MULTIPLE CHOICE
1. Markets with only a few sellers, each offering a product similar or identical to the others, are typically referred to as a. competitive markets. b. monopoly markets. c. monopolistically competitive markets. d. oligopoly markets.
ANSWER: d. oligopoly markets.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
2. An oligopoly is a market in which a. there are only a few sellers, each offering a product similar or identical to the others. b. firms are price takers. c. the actions of one seller in the market have no impact on the other sellers’ profits. d. All of the above are correct.
ANSWER: a. there are only a few sellers, each offering a product similar or identical to the others.
TYPE: M DIFFICULTY: 2 SECTION: 16.1
3. The general term for market structures that fall somewhere in-between monopoly and perfect competition is a. incomplete markets. b. imperfectly competitive markets. c. oligopoly markets. d. monopolistically competitive markets.
ANSWER: b. imperfectly competitive markets.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
4. In a market that is characterized by imperfect competition, a. firms are price takers. b. there is always a large number of firms. c. there are at least a few firms that compete with one another. d. the actions of one firm in the market never have any impact on the other firms’ profits.
ANSWER: c. there are at least a few firms that compete with one another.
TYPE: M DIFFICULTY: 2 SECTION: 16.1
5. There are two types of imperfectly competitive markets: a. monopoly and monopolistic competition. b. monopoly and oligopoly. c. monopolistic competition and oligopoly. d. monopolistic competition and cartels.
ANSWER: c. monopolistic competition and oligopoly.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
6. Monopolistically competitive firms are
Oligopoly
MULTIPLE CHOICE
1. Markets with only a few sellers, each offering a product similar or identical to the others, are typically referred to as a. competitive markets. b. monopoly markets. c. monopolistically competitive markets. d. oligopoly markets.
ANSWER: d. oligopoly markets.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
2. An oligopoly is a market in which a. there are only a few sellers, each offering a product similar or identical to the others. b. firms are price takers. c. the actions of one seller in the market have no impact on the other sellers’ profits. d. All of the above are correct.
ANSWER: a. there are only a few sellers, each offering a product similar or identical to the others.
TYPE: M DIFFICULTY: 2 SECTION: 16.1
3. The general term for market structures that fall somewhere in-between monopoly and perfect competition is a. incomplete markets. b. imperfectly competitive markets. c. oligopoly markets. d. monopolistically competitive markets.
ANSWER: b. imperfectly competitive markets.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
4. In a market that is characterized by imperfect competition, a. firms are price takers. b. there is always a large number of firms. c. there are at least a few firms that compete with one another. d. the actions of one firm in the market never have any impact on the other firms’ profits.
ANSWER: c. there are at least a few firms that compete with one another.
TYPE: M DIFFICULTY: 2 SECTION: 16.1
5. There are two types of imperfectly competitive markets: a. monopoly and monopolistic competition. b. monopoly and oligopoly. c. monopolistic competition and oligopoly. d. monopolistic competition and cartels.
ANSWER: c. monopolistic competition and oligopoly.
TYPE: M DIFFICULTY: 1 SECTION: 16.1
6. Monopolistically competitive firms are