Podcast
Questions and Answers
Which term refers to a market structure in which only a few sellers offer similar or identical products and dominate the market?
Which term refers to a market structure in which only a few sellers offer similar or identical products and dominate the market?
- Market segments
- Oligopoly (correct)
- Concentration ratio
- Collusion
What does the concentration ratio measure?
What does the concentration ratio measure?
- The breaking down of customers into groups with similar buying habits or characteristics
- The proportion of total market share accounted for by a particular number of firms (correct)
- An agreement among firms in a market about quantities to produce or prices to charge
- A group of firms acting in unison
In an oligopolistic market structure, how do firms differentiate themselves?
In an oligopolistic market structure, how do firms differentiate themselves?
- By offering similar or identical products
- By seeking to differentiate themselves in some way (correct)
- By breaking down customers into groups with similar buying habits or characteristics
- By acting in unison as a group of firms
What is the term for the breaking down of customers into groups with similar buying habits or characteristics?
What is the term for the breaking down of customers into groups with similar buying habits or characteristics?
What is an agreement among firms in a market about quantities to produce or prices to charge called?
What is an agreement among firms in a market about quantities to produce or prices to charge called?
What is a group of firms acting in unison called?
What is a group of firms acting in unison called?
What is the term for a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all other actors have chosen?
What is the term for a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all other actors have chosen?
Which of the following is a controversial business practice mentioned in the text?
Which of the following is a controversial business practice mentioned in the text?
What is the term used to describe a situation where firms hold price below average cost to force out competitors or prevent new firms from entering the market?
What is the term used to describe a situation where firms hold price below average cost to force out competitors or prevent new firms from entering the market?
What is the term used to describe a strategy designed to deter entry to a market by producing a number of products within a product line as different brands?
What is the term used to describe a strategy designed to deter entry to a market by producing a number of products within a product line as different brands?
What is the term used to describe a situation where firm behavior results in a market outcome that appears to be anti-competitive but has arisen because firms acknowledge they are interdependent?
What is the term used to describe a situation where firm behavior results in a market outcome that appears to be anti-competitive but has arisen because firms acknowledge they are interdependent?
What is the term used to describe games where players make decisions in sequence with some players able to observe the strategic choices of others?
What is the term used to describe games where players make decisions in sequence with some players able to observe the strategic choices of others?
What is the term used to describe the use of competition law to prevent oligopolies from engaging in behavior that reduces competition?
What is the term used to describe the use of competition law to prevent oligopolies from engaging in behavior that reduces competition?
What is the term used to describe a situation where a manufacturer requires a buyer to purchase additional products as a condition of purchasing a desired product?
What is the term used to describe a situation where a manufacturer requires a buyer to purchase additional products as a condition of purchasing a desired product?
What is the term used to describe the situation where firms acknowledge they are interdependent and make decisions accordingly?
What is the term used to describe the situation where firms acknowledge they are interdependent and make decisions accordingly?
