Do you understand oligopoly?

This quiz tests your knowledge of market structures examining the area of oligopoly

published on March 15, 2011
1/5

In an oligopoly

There is a vast array of firms, each of which is big enough to influence priceenough to
There are a few firms, each of which is big enough to influence price
There are a few firms, but one dominant firm decides on price
2/5

For collusion to work

Hint: 1 choice
Demand must be perfectly inelastic
Demand must be relatively inelastic
Demand must be elastic
3/5

A dominant strategy in game theory is one that is

Hint: 1 choice
Forceful, and convinces others to comply with your policies
Best no matter what the opposition does
4/5

In a situation of price-leadership, the dominant firm in the industry

Hint: 1 choice
Sets a price and allows competing firms to supply all they want at that price
Sets a price and forces competing firms to supply all they wanted at a higher price
Sets a price and allows competing firms to supply a limited number of goods at that price
5/5

In an oligopoly prices are lower than in a monopoly

Hint: 1 choice
True
False