Oligopoly Market Structure Quiz

A market structure where a small number of firms dominate and have significant control over prices.

When one company's actions affect the others in the market, like a ripple effect.

Firms use advertising, promotions, and discounts to attract consumers and gain market share.

Oligopolists compete intensely, watching each other closely to react to changes in pricing or strategies.

It's easy for firms to leave the market, but entering can be difficult due to high costs or barriers.

When firms produce identical or very similar products.

When firms differentiate their products to stand out, like through features or branding.

A real-world example of oligopoly, like the oil industry with a few major players.

A demand curve with a sharp bend, indicating different price elasticities above and below the kink point.

When a firm increases its price, consumers switch to competitors, making demand elastic.

When a firm decreases its price, competitors follow suit, making demand inelastic.

A situation where firms in an oligopoly secretly agree to coordinate their prices or output.

When firms successfully coordinate their actions to maximize profits.

When firms in an oligopoly attempt to collude, but their efforts are not fully successful.

When firms compete by differentiating their products or services to attract customers.

A situation where firms within an industry coordinate their actions, mainly on pricing and output, to maximize collective profits.

When firms in an oligopoly formally organize and agree to control crucial aspects of their industry, like production levels and prices, to increase collective profits.

A form of imperfect collusion where firms in an oligopoly observe each other's actions and adjust accordingly without formal agreements.

A type of imperfect collusion where the firms in an oligopoly do not have clear or specific terms for their agreements regarding prices and outputs.

A type of imperfect collusion where not all firms within a given industry are involved in the agreement.

When firms in an oligopoly make decisions based on how they expect other firms to react, without an explicit agreement, creating an interdependent market.

A complete form of collusion where firms in an oligopoly surrender their decision-making power to a central governing body, aiming for monopolistic profit maximization.