Question 1

The study of how decisions are made when strategic interaction occurs between rivals is known as

Accepted Answer

A) Game theory. 
B) Contestable market theory. 
C) Market power theory. 
D) Predatory pricing theory. 
A) Game theory. 
B) Contestable market theory. 
C) Market power theory. 
D) Predatory pricing theory.

Question 2

If oligopolists start cutting prices to capture a larger market share,the result will be

Accepted Answer

A) Lower prices,decreased output,and larger profits. 
B) Higher prices,increased output,and larger profits. 
C) Lower prices,increased output,and larger profits. 
D) Lower prices,increased output,and smaller profits. 
A) Lower prices,decreased output,and larger profits. 
B) Higher prices,increased output,and larger profits. 
C) Lower prices,increased output,and larger profits. 
D) Lower prices,increased output,and smaller profits.

Question 3

If an oligopolist is going to change its price or output,its initial concern is

Accepted Answer

A) The response of its competitors. 
B) A change in its cost structure. 
C) The concentration ratio. 
D) The response of the Federal Trade Commission. 
A) The response of its competitors. 
B) A change in its cost structure. 
C) The concentration ratio. 
D) The response of the Federal Trade Commission.

Question 4

An oligopoly will maximize profits where price equals marginal cost,just like a perfectly competitive firm.

Accepted Answer

A) True 
 B)False

Question 5

Monopolistic competition is an industry in which products are differentiated,but in oligopolies products are standardized.

Accepted Answer

A) True 
 B)False

Exam 25: Oligopoly

The study of how decisions are made when strategic interaction occurs between rivals is known as

If oligopolists start cutting prices to capture a larger market share,the result will be

If an oligopolist is going to change its price or output,its initial concern is

An oligopoly will maximize profits where price equals marginal cost,just like a perfectly competitive firm.

Monopolistic competition is an industry in which products are differentiated,but in oligopolies products are standardized.

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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