1
Q
How many firms in an oligopoly?
A
Five or fewer firms with at least 50% of market concentration ratio
2
Q
How high are the barriers to entry in oligopoly?
A
Very high but not as high as monopoly
3
Q
What do oligopolists aim to maximise?
A
Profit
4
Q
What kind of demand curve does oligopoly have?
A
downward sloping
5
Q
Are products differentiated or homogeneous in Oligopoly?
A
Differentiated.
6
Q
Are firms price makers or price takers In Oligopoly?
A
Price makers but interdependent between oligopolists
7
Q
In what scenarios (‘runs’) can abnormal profit be made in an Oligopoly?
A
Both long run and short run
8
Q
What are the ways Oligopolists compete?
A
Price wars Predatory Pricing Limit Pricing Price Leadership Non-Price Competition
9
Q
What are the ways Oligopolists collude?
A
Overt Collusion
Tacit Collusion
Economics Unit 3
flashcards
Decks in class (14)
# Cards
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3.3.4 - Costs28
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3.3.1 Objectives of a Firm10
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3.3.2 Why do Firms grow27
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3.3.3 - Revenue5
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3.3.5 Efficiency5
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3.3.6 Profit14
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3.3.7 Market Structure and Concentration and Barriers etc.17
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3.3.10 Contestability5
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3.3.11 Government Intervention36
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Monopoly12
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Monopsony6
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Oligopoly9
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Monopolistic Competition9
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Diagrams17
