Do you understand oligopoly? This quiz tests your knowledge of market structures examining the area of oligopoly Jen.Preston published on March 15, 20112 responses 1 « Previous Next » Questions in vertical order 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
