When one firm in the cooking oil market started an advertising campaign that stressed the
nutritional value of its cooking oil, all other cooking oil manufacturers started similar
advertising campaigns. This suggests that the cooking oil market is
Detailed Answer
B
2
An industry that has a relatively small number of firms that dominate the market is called
Detailed Answer
D
3
Assume that firms in an oligopoly are currently colluding to set price and output to maximise
total industry profit. If the oligopolists are forced to stop colluding, the price charged by the
oligopolists will _______ and the total output produced will ________.
Detailed Answer
D
4
A group of firms that gets together to make price and output decisions is called
Detailed Answer
C
5
In which of the following circumstances would a cartel be most likely to work?
Detailed Answer
C
6
A collusive oligopoly (with a dominant price leader) will produce a level of output
Detailed Answer
D
7
The kinked demand curve model of oligopoly assumes that the price elasticity of demand
Detailed Answer
A
8
Price discrimination involves
Detailed Answer
D
9
Price discrimination often favours public interest because of it
Detailed Answer
D
10
Oligopolistic firms making their price-output decisions keeping in view the current and
possible future decisions of their rival firms is an example of: