What is an oligopoly? Give two examples of oligopolistic industries in the United States
What will be an ideal response?
Oligopoly is a market structure in which a small number of interdependent firms compete. Examples include cigarettes, beer, the airline industry, computer manufacturers, and the aluminum can industry.
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The mercantilism policy failed to generate gains from trade for countries which adopted it because of: a. increases in consumer spending
b. high levels of federal debt. c. supply-side shocks from the oil-exporting countries. d. runaway inflation in the U.S. e. retaliations from other countries.
If a government runs a cyclically balanced budget, its revenue will equal its expenditure: a. each year
b. at each phase of the business cycle. c. over the course of the business cycle. d. only during expansions. e. only during recessions.
The oligopoly market structure model is characterized by:
a. many firms in an industry producing differentiated products. b. many firms in an industry producing identical products. c. few firms in an industry with natural barriers to entry. d. a single firm in an industry with barriers to entry. e. many firms in an industry with barriers to entry.
In which one of the following market models is X-inefficiency least likely to be present?
A. Pure competition. B. Oligopoly. C. Monopolistic competition. D. Pure monopoly.