Economics Paper 18

1

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






2

An industry that has a relatively small number of firms that dominate the market is called






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 ________.






4

A group of firms that gets together to make price and output decisions is called






5

In which of the following circumstances would a cartel be most likely to work?






6

A collusive oligopoly (with a dominant price leader) will produce a level of output






7

The kinked demand curve model of oligopoly assumes that the price elasticity of demand






8

Price discrimination involves






9

Price discrimination often favours public interest because of it






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:






Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage: