Oligopolistic Market Quiz & Flashcards for Consumers

Questions and Answers

Which helps enable an oligopoly to form within a market? (Select all that apply)

The government restricts market entry.

Costs of starting a competing business are too high. (correct)

No competition exists between producers.

The number of options in a market confuses consumers.

Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?

De facto monopoly

Government monopoly

Natural monopoly

Technological monopoly (correct)

In the United States, which type of industry is often considered part of an oligopoly?

Mail delivery services

Electric companies

Denim companies

Cell phone carriers (correct)

______ is the term used to describe the amount of control or influence that consumers have on a market.

Sovereignty Signup and view all the answers

In an oligopolistic market, consumer choice is

Limited Signup and view all the answers

Why is the automobile industry considered an oligopoly? (Select all that apply)

It has significant barriers to entry. Signup and view all the answers

Why is competition limited in an oligopoly?

High entry costs prevent new producers from entering the market. Signup and view all the answers

Natural monopolies occur when one producer

Can meet the market's entire demand. Signup and view all the answers

The market for which item generally involves pure competition?

Corn Signup and view all the answers

In pure competition, producers compete exclusively on the basis of

Selling identical items. Signup and view all the answers

Study Notes

Market Structures and Competition

Oligopolies form when high startup costs make it difficult for new competitors to enter the market.
Technological monopoly occurs when a company, like Wellness Pharmaceuticals with Lexabuzac, has exclusive control over a product due to unique technology.
In the U.S., cell phone carriers exemplify an industry that operates within an oligopoly.
Consumer sovereignty refers to the influence that consumers have over market dynamics.
In an oligopolistic market, consumer choice is typically limited due to the dominance of a few firms.
The automobile industry is characterized as an oligopoly because it has significant barriers to entry, relies on brand loyalty, and is controlled by a few key players.
Limited competition in oligopolies is often due to high entry costs that deter new producers from entering the market.
Natural monopolies exist when a single producer can meet the entire market's demand efficiently.
The market for corn generally exemplifies pure competition where many producers sell identical products.
In pure competition, the focus for producers is on selling identical items, minimizing differentiation.

Description

Test your understanding of market structures and competition with these flashcards. Each card covers essential concepts such as oligopolies and monopolies, helping you master the key terms and definitions. Perfect for students and professionals alike!