Question 1

In an oligopoly market structure, how many sellers are typically present?

Accepted Answer

A small number of sellers

Answer

Only one seller

Answer

No sellers

Answer

A large number of sellers

Question 2

What is the potential for profit in an oligopoly market in the long run?

Accepted Answer

Maintain some profit

Answer

No profit at all

Answer

High profit like a monopoly

Answer

Low profit like in perfect competition

Question 3

What happens to quantity demanded when an oligopolistic firm increases its price and no rivals follow suit?

Accepted Answer

Large decrease in quantity demanded

Answer

Quantity demanded becomes elastic

Answer

No change in quantity demanded

Answer

Small increase in quantity demanded

Question 4

What does the demand curve look like for an oligopolistic firm?

Accepted Answer

Kinked demand curve

Answer

Downward-sloping demand curve

Answer

Straight-line demand curve

Answer

Upward-sloping demand curve

Question 5

How does an oligopolistic firm determine the profit-maximizing output?

Accepted Answer

Where marginal revenue equals marginal cost

Answer

Where marginal cost is lowest

Answer

Where average revenue equals average cost

Answer

Where marginal revenue is highest

Question 6

How do average cost curves impact an oligopolistic firm's short-run profitability?

Accepted Answer

It can make money, lose money, or break even

Answer

Always make money

Answer

Only break even

Answer

Always lose money

Question 7

What protects profits in an oligopoly market structure in the long run?

Accepted Answer

Barriers to entry

Answer

High competition

Answer

Government regulations

Answer

Low prices

Question 8

How do oligopoly profits compare to monopoly profits?

Accepted Answer

Not as high as monopoly profits

Answer

The same as monopoly profits

Answer

Higher than monopoly profits

Answer

Lower than perfect competition profits

Question 9

What happens when firms in an oligopoly act like a single large firm in order to boost profits?

Accepted Answer

Attempt to form a monopoly

Answer

Merge into one company

Answer

Compete aggressively

Answer

Exit the market

Question 10

What is the unique characteristic of an oligopoly market that makes it complex?

Accepted Answer

Mutual interdependence among firms

Answer

Unlimited sellers

Answer

No competition

Answer

Fixed prices

Question 11

What is a key characteristic of an oligopoly market structure?

Accepted Answer

Only a small number of sellers

Answer

Many sellers

Answer

One seller

Answer

Only buyers

Question 12

What is the impact of oligopoly characteristics on prices and output?

Accepted Answer

Higher price than competitive markets, but not as high as monopoly

Answer

Lower price than competitive markets

Answer

Same price as competitive markets

Answer

Higher price than monopoly

Question 13

What happens to the demand curve of an oligopolistic firm when it attempts to increase its price?

Accepted Answer

Demand becomes more elastic

Answer

Demand becomes more inelastic

Answer

Demand remains constant

Answer

Demand disappears

Question 14

What is the potential outcome for an oligopolistic firm if it lowers its price?

Accepted Answer

Demand faces inelasticity and does not change much

Answer

Demand becomes elastic and increases

Answer

Demand remains constant

Answer

Demand becomes elastic and decreases

Question 15

What is the profit-maximizing rule for an oligopolistic firm?

Accepted Answer

Output where marginal revenue equals marginal cost

Answer

Output where average cost equals marginal cost

Answer

Output where marginal revenue is highest

Answer

Output where marginal cost is lowest

Question 16

How do barriers to entry affect profits in an oligopoly market structure?

Accepted Answer

Help protect profits in the long run

Answer

Decrease profits in the long run

Answer

Increase competition

Answer

Have no impact on profits

Question 17

In an oligopoly market, what happens if a firm loses money in the short run?

Accepted Answer

It exits the industry in the long run

Answer

It expands operations

Answer

It acquires competitors

Answer

It increases prices

Question 18

How do profits of an oligopolistic firm compare to a monopoly in the long run?

Accepted Answer

Not as high as a monopoly

Answer

The same as a monopoly

Answer

Higher than a monopoly

Answer

Lower than any other market structure

Question 19

What happens when firms in an oligopoly attempt to act like a single large firm?

Accepted Answer

They form a monopoly to boost profits

Answer

They exit the market

Answer

They merge with other industries

Answer

They form a perfect competition

Question 20

How does mutual interdependence among firms impact an oligopoly market structure?

Accepted Answer

Firms keep an eye on each other's actions

Answer

Firms ignore each other

Answer

Firms collaborate openly

Answer

Firms compete aggressively

Question 21

What is a characteristic of an oligopoly market structure?

Accepted Answer

Only a small number of sellers

Answer

Many sellers

Answer

No sellers

Answer

One seller

Question 22

What is the product type found in an oligopoly?

Accepted Answer

Can be either the same or differentiated

Answer

Always the same

Answer

Not relevant

Answer

Always differentiated

Question 23

What is the potential for profit in an oligopoly?

Accepted Answer

Can maintain some profit into the long run

Answer

No profit possible

Answer

Huge profits guaranteed

Answer

Only short-term profit

Question 24

What happens to prices in an oligopoly compared to a competitive market?

Accepted Answer

Higher than in a competitive market

Answer

Same as in a competitive market

Answer

Lower than in a competitive market

Answer

Unpredictable

Question 25

What does an oligopolistic firm experience when it raises its price and no rivals follow suit?

Accepted Answer

Large decrease in quantity demanded

Answer

Market share increase

Answer

No change in quantity demanded

Answer

Increase in quantity demanded

Question 26

What is the demand faced by an oligopolistic firm when it lowers its price and everyone else follows suit?

Accepted Answer

Inelastic demand

Answer

Elastic demand

Answer

Unpredictable demand

Answer

No change in demand

Question 27

What will the marginal revenue curve associated with a kinked demand curve look like?

Accepted Answer

Unusual

Answer

Predictable

Answer

Linear

Answer

Constant

Question 28

How can you determine the profit-maximizing output in an oligopoly?

Accepted Answer

Where marginal revenue equals marginal cost

Answer

Where marginal revenue is highest

Answer

Where marginal cost is lowest

Answer

Randomly

Question 29

What happens if an oligopolistic firm makes money in the short run?

Accepted Answer

Barriers to entry help protect profits

Answer

Profits are lost in the long run

Answer

Profits are guaranteed long-term

Answer

More competitors enter the market

Question 30

How do profits in an oligopoly compare to a monopoly?

Accepted Answer

Not quite as high as a monopoly

Answer

Lower than a monopoly

Answer

The same as a monopoly

Answer

Higher than a monopoly

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