Oligopoly: AP Microeconomics Online Test

When the Oligopolist incurs losses in the short run, then in the long run, he will:
Any of the Above
Incur losses
Break even
Stay in the business
Shut down the business
In Pure Oligopoly,
There are few sellers producing Differentiated Product
There are few sellers producing Homogenous Product
There are many sellers producing Different Product
There are many sellers producing Differentiated Product
There are many sellers producing Homogenous Product
It is not possible to determine the Demand Curve of an Oligopolist because: I. Advertising plays an important role in Sales Promotion II. The aim of the firm is not just to maximize the profits III. Consumer’s tastes and preferences keep changing
I and III
I and II
III only
II only
I only
For Joint Profit Maximization under Collusive Oligopoly:
The highest cost firm makes the best output
The highest cost firm makes the largest output
The lowest cost firm makes the largest output
The lowest cost firm makes the highest profit
The highest cost firm makes the highest profit
In Kinked Demand Curve Model, the Oligopolists: I. Do not collude II. Understand their Interdependence III. Keep prices constant
I, II and III
II and IV
III only
II only
I only
Oligopoly is:
An industry with more competition than a Monopoly but less than that in Perfect Competition
A type of Monopolistic Competition where each seller is aware how other sellers will be affected by his actions
An industry with more than two firms but less than four.
An industry with more than one firm but less than four.
An industry with more than four firms but less than ten.
The Kinked Demand Model explains:
Both price and demand rigidity
Demand flexibility
Demand rigidity
Price flexibility
Price rigidity
For an Oligopolistic firm, the price of the product:
None of the Above
Is not influenced by the changes in the Supply and Demand
Is influenced by the changes in the Supply and Demand
Is influenced by the changes in Demand of the Consumer
Is influenced by the changes in Supply
In a Differentiated Oligopoly:
There are few sellers producing Differentiated product
There are few sellers producing Homogenous product
There are many sellers producing different product
There are many sellers producing Differentiated product
There are many sellers producing Homogenous product
The upper portion of the Kinked Demand Curve is relatively
Less Inelastic
Less Elastic
Inelastic
More Inelastic
More Elastic
Description:

Take this short test to assess the basics of the Oligopoly Market Structure, its features and conditions for Equilibrium. The 7-minute short test also contains questions on the Kinked Demand Curve under an Oligopoly. You’ll find Multiple Choice questions revising the basics of Oligopoly.

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