oligopoly MCQs – Page 2

Practise focused oligopoly questions with marked answers for exam preparation and subject revision.

oligopoly Mcqs
21. In a cartel ?
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A. Price wars are common

B. Firms collude

C. Firms use price to win market share from competitors

D. Firms compete against each other

22. If a few firms dominate an industry the market is known as ?
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A. Duopoly

B. monopolistic competition

C. Oligopoly

D. Competitively monopolistic

23. As the number of sellers in an oligopoly increases ?
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A. output in the market tends to fall because each firm must cut back on production

B. The price in the market moves closer to marginal cost

C. collusion is more likely to occur because a larger number of firms can place pressure on any firm that defects

D. the price in the market moves further from marginal cost

24. As the number of sellers in an oligopoly grows larger, an oligopolistic market looks more like ?
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A. a collusion solution

B. monopoly

C. monopolistic competition

D. a competitive market