Froggy Jumps Oligopoly QuizOnline version Test your knowledge on the concept of oligopoly in economics with these challenging questions! by sarah ayyad 1 What is an oligopoly? a A market with only one firm b A market structure with few large firms dominating the industry. c A market with many small firms 2 What is a characteristic of oligopoly? a Interdependence among firms' strategic decisions. b Perfect competition c Monopoly power 3 What is a common strategy in oligopoly? a Collusion b Perfect competition c Price leadership. 4 What is a barrier to entry in oligopoly? a Government subsidies b Low production costs c High start-up costs. 5 What is the kinked demand curve model in oligopoly? a It suggests firms match price cuts but not price increases. b It indicates collusion among firms c It shows a perfectly elastic demand curve 6 What is a potential outcome of a price war in oligopoly? a Lower prices and reduced profits for all firms. b Market equilibrium c Higher prices and increased profits 7 What is a real-world example of an oligopoly? a Agricultural market b Perfectly competitive market c Automobile industry. 8 What is a key challenge in regulating oligopolies? a Preventing collusion and anticompetitive behavior. b Promoting monopolistic practices c Encouraging price wars 9 What is a benefit of oligopolies to consumers? a Higher prices due to lack of competition b Limited product variety c Potential for product innovation and quality improvement. 10 What is a risk associated with oligopolies? a Government intervention for fair competition b Increased competition and lower prices c Reduced consumer choice and market inefficiency.
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