(A) firms selling different products at different prices to different consumers.
(B) firms selling the same product at different prices to different consumers.
(C) consumers discriminating between different sellers on the basis of the different prices
they quote for different products.
(D) consumers discriminating between different sellers on the basis of the different prices
they quote for the same product.
Category: Economics Mcqs
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The kinked demand curve model of oligopoly assumes that the price elasticity of demand?
(A) in response to a price increase is more than the elasticity of demand in response
to a price decrease.
(B) is constant regardless of whether price increases or decreases.
(C) is infinite if price increases and zero if price decreases.
(D) n response to a price increase is less than the elasticity of demand in response to a
price decrease.
A collusive oligopoly (with a dominant price leader) will produce a level of output?
(A) that would prevail under perfect competition.
(B) between that which would prevail under perfect competition and that which a
monopolistic competitor would choose in the same industry.
(C) between that which would prevail under perfect competition and that which a
monopolist would choose in the same industry.
(D) equal to what a monopolist would choose in the same industry.
In which of the following circumstances would a cartel be most likely to work?
(A) The coffee market, where the product is standardised and there are a large number of
coffee growers.
(B) The automobile industry, where there are few producers but there is great product
differentiation.
(C) The market for copper, where there are very few producers and the product is
standardised.
(D) The fast-food market, where there are a large number of producers but the demand for
fast food is inelastic.
A group of firms that gets together to make price and output decisions is called?
(A) a non-collusive oligopoly.
(B) price leadership.
(C) a cartel.
(D) a concentrated industry.
An industry that has a relatively small number of firms that dominate the market is called?
(A) a natural monopoly.
(B) a colluding industry.
(C) a merged industry.
(D) a concentrated industry.
A form of industry structure characterised by a few firms each large enough to influence market price is?
(A) monopolistic competition.
(B) monopoly.
(C) perfect competition.
(D) oligopoly.
The “long-run” equilibrium outcomes in monopolistic competition and perfect competition are similar in the sense that under both market structures?
(A) firms will only earn a normal profit.
(B) the efficient output level will be produced in the long run.
(C) firms will be producing at minimum average cost.
(D) firms realise all economies of scale.