Oligopoly (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
13 questions from this quiz
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Practise the questions
13 questions from this quiz
What are the two defining features of an oligopoly market structure?
What are the two defining features of an oligopoly market structure?
Small number of firms & interdependence
What do concentration ratios measure in a market?
What do concentration ratios measure in a market?
Market share of largest firms
If firms have market shares of 30%, 25%, 20%, and 10%, what is the ratio?
If firms have market shares of 30%, 25%, 20%, and 10%, what is the ratio?
Which characteristic prevents new firms entering an oligopoly easily?
Which characteristic prevents new firms entering an oligopoly easily?
High barriers to entry
What does non-price competition refer to?
What does non-price competition refer to?
Strategies other than price changes
In kinked demand curve theory, what happens if a firm raises its price?
In kinked demand curve theory, what happens if a firm raises its price?
Others won't follow; loses market share
What is demand elasticity above the kink in the kinked demand curve model?
What is demand elasticity above the kink in the kinked demand curve model?
Relatively elastic
What happens if one firm lowers its price in an oligopoly?
What happens if one firm lowers its price in an oligopoly?
Others follow; small gain in share
Why does the kinked demand curve model explain price rigidity?
Why does the kinked demand curve model explain price rigidity?
Firms avoid price changes due to rivals
What is an example of formal collusion?
What is an example of formal collusion?
OPEC agreeing on production quotas
What characterises tacit collusion?
What characterises tacit collusion?
No formal agreements; price leadership
What does product differentiation aim to achieve?
What does product differentiation aim to achieve?
Competitive advantage & higher prices
Which is an example of non-price competition?
Which is an example of non-price competition?
Advertising and branding