Monopoly vs Oligopoly Quiz
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Questions and Answers

What is a characteristic of a monopoly?

  • Being a price-taker
  • Low barriers to entry
  • Offering unique products (correct)
  • Multiple firms dominating the market

    • What is considered a barrier to entry in monopolies?

  • High competition
  • Technological advancements
  • Marketing budgets (correct)
  • Low start-up costs

    • What are some advantages of monopolies mentioned in the text?

  • Economies of scale (correct)
  • Price competition
  • Lack of innovation
  • Increased competition

    • In an oligopoly, how do firms typically behave towards each other?

    <p>Collude to control prices</p> Signup and view all the answers

    What differentiates oligopolies from monopolies based on the text?

    <p>Large firms offering unique products</p> Signup and view all the answers

    What are common types of barriers to entry in monopolies?

    <p>Technological barriers</p> Signup and view all the answers

    In what way does a monopoly affect price?

    <p>It manipulates prices as a price-maker</p> Signup and view all the answers

    What differentiates oligopoly firms' behavior from monopolies?

    <p>Mutual cooperation in setting prices</p> Signup and view all the answers

    What is a characteristic of oligopolies in terms of market dominance?

    <p>Few large firms with substantial market share</p> Signup and view all the answers

    How do monopolies impact innovation compared to competitive markets?

    <p>Monopolies stifle innovation due to lack of competition</p> Signup and view all the answers

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