Econ 001 - Principles of Microeconomics » Summer 2019 » Quiz 12

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
Which of the practices listed are illegal in the United States?
A.   monopoly
B.   collusion
C.   oligopoly
Question #2
What is the greatest incentive for creating a oligopoly?
A.   provide innovative products
B.   earn higher profits
C.   control the market
Question #3
In some cases oligopolies can benefit society by:
A.   earning abnormal profits.
B.   taking advantage of scale economies to produce at low average cost.
C.   raising prices and reducing output.
Question #4
In 2007, five or six major pharmaceutical companies formed a group in order to control the price of vitamins and adjust their production. Such an arrangement is called a ________.
A.   Duopoly
B.   Monopoly
C.   Cartel
D.   Dominant strategy
Question #5
Firms in an oligopoly often:
A.   face perfectly elastic demand curves.
B.   have no incentive to collude.
C.   make decisions based on the behavior or expected behavior of their competitors.
Question #6
How do oligopolies influence market inefficiencies?,,,,
A.   The industry produces less output.
B.   Prices for these goods are artificially high.
C.   The industry makes higher profits.
D.   Deadweight loss for society is increased.
Question #7
In a prisoner's dilemma, what type of behavior provides the most benefit for each individual?
A.   cooperate
B.   remain silent
C.   confess
Question #8
In the framework of an oligopoly, what strategy can work like a silent form of cooperation?
A.   always match other cartel firms' price increases, but don’t match price cuts
B.   legally enforceable agreements
C.   immediately match price increases
D.   always match other cartel firms' price cuts, but don’t match price increases
Question #9
________ arises when firms act together to reduce output and keep prices high.
A.   Oligopoly
B.   Monopoly
C.   Cartel
Question #10
Suppose circumstances have allowed several large firms to have all or most of the sales in an industry. Which of the following may be happening?,,
A.   cartel
B.   oligopoly
C.   perfect competition
Question #11
Saudi Arabia, Venezuela, Qatar and others, are members of OPEC, which is best described as which of the following?
A.   a cartel
B.   a monopoly
C.   an oligopoly
Question #12
For which of the following reason(s) are oligopolies inefficient?,,
A.   They may lack incentives to provide innovative products and high-quality service​.
B.   ​Barriers to entry can allow them to earn sustained profits over long periods of time​.
C.   Typically they do not produce at the minimum of their average cost curves.
Question #13
Oligopolistic markets:,,
A.   are usually thought of as the most efficient market structures.
B.   typically have higher barriers to entry.
C.   are characterized as having a small number of sellers.
Question #14
Which of the following are advantages that firms could gain by working together as if they were a monopoly?,,
A.   Firms can charge a higher price.
B.   Firms can hold down industry output.
C.   Firms can increase industry productivity.
Question #15
Firms in an oligopoly typically act more like ________.
A.   competitors
B.   business partners
C.   shareholders
Question #16
Which of the following refers to firms’ ability to make the same pricing decisions without consulting each other?
A.   price fixing
B.   malfeasance
C.   implicit collusion
Question #17
In the framework of an oligopoly, what strategy can work like a silent form of cooperation?
A.   always match other cartel firms' price cuts, but don’t match price increases
B.   legally enforceable agreements
C.   always match other cartel firms' price increases, but don’t match price cuts
D.   immediately match price increases

Need help with your exam preparation?

Existing Quiz Clients Login here