Questions on Oligopoly - 19013 Words

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†¦show more content†¦TYPE: M DIFFICULTY: 2 SECTION: 16.1 11. One key difference between an oligopoly market and a competitive market is that oligopolistic firms a. are price takers while competitive firms are not. b. are interdependent while competitive firms are not. c. sell completely unrelated products while competitive firms do not. d. sell their product at a price equal to marginal cost while competitive firms do not. ANSWER: b. are interdependent while competitive firms are not. TYPE: M DIFFICULTY: 2 SECTION: 16.1 12. Typical firms in our economy are classified as a. perfectly competitive. b. imperfectly competitive. c. duopolists. d. oligopolists. ANSWER: b. imperfectly competitive. TYPE: M DIFFICULTY: 1 SECTION: 16.1 13. Given that there are approximately 12 companies currently selling cars in the United States, the car market is classified as a. perfectly competitive. b. monopolistically competitive. c. oligopolistic. d. the classification is open to debate. ANSWER: d. the classification is open to debate. TYPE: M DIFFICULTY: 2 SECTION: 16.1 14. When an industry has many firms, the industry is a. an oligopoly if the firms sell differentiated products; it is monopolistically competitive if the firms sell identical products. b. an oligopoly if the firms sell differentiated products; it is perfectlyShow MoreRelatedQuestions On Asian Grocery Stores1484 Words   |  6 Pagesstructure interests me the most in microeconomics in the course of IB Economics. Based on my observations of the grocery stores and knowledge of the market structure, the question is raised, â€Å"to what extent does Asian grocery stores operate in an oligopolistic market in the region of Chinatown of Victoria?† To investigate this question, both primary and secondary research must be conducted. For primary research, observations and investigations of the behaviours of grocery sellers will be done in theRead MorePlease Read Chapter 10 and Answer the Following Questions:1211 Words   |  5 PagesPlease read chapter 10 and answer the following questions: 1.  (Varieties of Oligopolies)  do the firms in an oligopoly act independently or interdependently? Explain your answer. 2.  (Price Leadership) why might a price–leadership model of oligopoly not be an effective means of collusion in an oligopoly? * Price leadership practices violate US anti-trust laws. * The more differentiated the product is, the less effective price leadership is as a means of collusion. * There is no guaranteeRead More The Main Categories of Market Structures Essay1668 Words   |  7 Pagesthat exists between the firms within the industry, i.e. the theory of Alternative Market Structures. This essay based on three questions divides into 3 parts to explain and evaluate the questions. 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Monopolistic competition: Monopolistic competition is market structure in whichRead MoreMonopoly Is A Market Structure1285 Words   |  6 Pagesof competition, which means the consumer surplus may be minimized. This market structure will not be a part of a fair income distribution of our society. Oligopoly usually exists where few large firms producing a homogeneous or differentiated product dominate a market. A few examples are automobile and gasoline industries. To think of oligopoly â€Å"of circumstances in which this is not a sensible assumption. In particular, where a small number of large firms dominates a particular industry producingRead MoreAntitrust Investigation On The Anti Monopoly Law868 Words   |  4 Pagescontents of this article applies to certain aspects of economics by responding to the following questions: 1. Why were these specific companies considered for antitrust behavior investigations? 2. What are some pecuniary and no pecuniary costs related to the antitrust behavior? 3. Do monopolies and oligopolies always reflect negatively on society? 4. What is an example that shows how monopolies and oligopolies can benefit society? Investigation and Costs Chinese consumers were complaining about beingRead MoreIt Has Been Argued That the Uk Banking System Is an Oligopoly1729 Words   |  7 PagesQuestion 1 It has been argued that the UK banking system is an oligopoly ( http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html# ) . a) Using appropriate diagrams and economic research critically discuss the extent to which this is the case b) What are the likely implications for consumers? + http://economicsonline.co.uk/Business_economics/Oligopoly.html The UK banking system is an Oligopoly becauseRead MoreA Note On Trust Issues933 Words   |  4 Pages2014, p. 14). The contents of this article applies to certain aspects of economics by responding to the following questions: 1. Why were the firms investigated for antitrust behavior? 2. What are some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior? 3. Are monopolies and oligopolies always bad for society? 4. What is an example of monopoly or oligopoly being beneficial for society? Investigation and Costs Complaints from Chinese consumers saying they were gettingRead MoreMarket Strategy Case Study: Katrinas Candies1665 Words   |  7 Pagesproducing market. Please respond to the following questions. a.) What market structures will Katrina’s Candies operate if the above condition prevails?  I think Katrinas Candies would be successful operating in an Oligopolistic Structure. Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry. The market can be dominated by as few as two firms or as many as twenty, and still be considered oligopoly. With fewer than two firms, the industry isRead MoreWhat Model Of Market Structure1455 Words   |  6 Pagescan produce accurate predictions. A prediction market provides a vivid illustration of the power of the wisdom of crowds. (Qiu, L., Rui, H., Whinston, A. B., 2014) This outline will break down the various market structures and will clarify all questions pertaining to the business in the city. The business will have to determine what model of market structure they will decide to use. All market structures have their own characteristics the first on the list is Perfect Competition. It describes a