Question : 14.1   Oligopoly and Barriers to Entry 1) A key part of : 1387858

14.1   Oligopoly and Barriers to Entry

1) A key part of Microsoft’s business strategy in the video game console market has been

A) to wait until competitors introduce new technology in their products before incorporating the technology in its products.

B) to concentrate on selling its products through large discount retailers like Wal-Mart.

C) the innovation of new products which initially have little to no competition.

D) to dominate the market by offering low-end products and beating its competitors’ prices.

2) Which of the following is not part of an oligopolist’s business strategy?

A) meeting worker health and safety standards required of all firms

B) deciding the level of total output of a new product

C) determining the amount of advertising a new product needs

D) setting the product’s price after considering what rivals will do

3) An oligopolistic industry is characterized by all of the following except

A) existence of entry barriers.

B) the possibility of reaping long-run economic profits.

C) firms pursuing aggressive business strategies, independent of rivals’ strategies.

D) production of standardized products.

4) An oligopoly firm is similar to a monopolistically competitive firm in that

A) both firms face the prisoner’s dilemma.

B) both operate in a market in which there are entry barriers.

C) both firms have market power.

D) both firms are in industries characterized by an interdependent firm.

5) An oligopolist differs from a perfect competitor in that

A) there is cutthroat competition in perfect competition but little competition in oligopoly because firms have significant market power.

B) firms in an oligopoly do not produce homogeneous products while firms in perfect competition do.

C) the market demand curve for a perfectly competitive industry is perfectly elastic, but it is downward sloping in an oligopolistic industry.

D) there are no entry barriers in perfect competition but there are entry barriers in oligopoly.

6) Which of the following is the best example of an oligopolistic industry?

A) the beef market

B) the pharmaceutical industry

C) public education

D) the beauty products industry

7) All of the following are examples of oligopolistic markets except

A) the broadcasting industry.

B) aircraft manufacture.

C) college bookstores.

D) seafood restaurant chains.

8) A characteristic found only in oligopolies is

A) break even level of profits.

B) interdependence of firms.

C) independence of firms.

D) products that are slightly different.

9) Producing a homogeneous product occurs in which of the following industries?

A) oligopoly, monopolistic competition and perfect competition

B) perfect competition only

C) oligopoly and perfect competition

D) monopolistic competition and perfect competition

10) Producing a differentiated product occurs in which of the following industries?

A) oligopoly, monopolistic competition and perfect competition

B) monopolistic competition only

C) oligopoly only

D) monopolistic competition and oligopoly