Do you understand oligopoly?

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

published on March 15, 2011219 responses 1 4.0★ / 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

For collusion to work

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Demand must be perfectly inelastic
Demand must be relatively inelastic
Demand must be elastic

A dominant strategy in game theory is one that is

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Forceful, and convinces others to comply with your policies
Best no matter what the opposition does

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

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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

In an oligopoly prices are lower than in a monopoly

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True
False