Oligopolies Quiz

Monopolistic competition occurs where there are...

• many sellers, but little product differentiation.
• many sellers, and considerable product differentiation.
• few sellers, but little product differentiation.
• few sellers, and considerable product differentiation.

Perhaps the most OBVIOUS difference between monopolistic competition and oligopolies is the...

• size of the market involved.
• nature of the product.
• number of sellers.
• amount of advertising each conducts.

Perhaps the simplest definition of oligopoly is...

• market differentiation.
• interdependence among firms.
• industry domination by a few firms.
• perceived product differentiation.

Research and development in the auto industry has been widely and severely criticized by economists MAINLY because...

• there have been relatively few technological improvements in automobiles during the past 40 years.
• too many firms are unwilling to share technological breakthroughs with others.
• consumers have had to pay heavily for the cost of this technology.
• there has been too much emphasis on style, and not enough on substantive improvements.

In the years following the passage of the Sherman Antitrust Act, its supporters have come to regard it as...

• unrealistically stringent.
• too antimonopolistic to be useful.
• the single most significant piece of legislation in outlawing trusts.
• well-intentioned but overly general.

According to the videotape presentation, airline deregulation has taught us which of the following important lessons?

• Despite its many drawbacks, regulation fosters important change.
• Regulation often works more to the benefit of the industry than the consumer.
• Poorly managed industries that would otherwise fail may be protected under deregulation.
• Without a certain minimal level of regulation, competition often dies.