Oligopoly: AP Microeconomics Online Test

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