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Q25. The Cournot model is best described as a A. Price competition model B. Output competition model C. Monopoly model D. Perfect competition model

29. A firm cheating in a cartel aims to A. Reduce profit B. Increase market price C. Gain more market share secretly D. Exit the market

Q28. Which condition makes collusion easier? A. Many firms B. Frequent price changes C. Stable demand D. Low barriers to entry

Q24.The Cournot equilibrium is reached when A. Firms maximize revenue B. Firms collude C. Each firm’s output is optimal given rivals’ output D. Price equals marginal cost

Q27. Limit pricing refers to A. Setting very high prices B. Setting price to maximize profit C. Setting low prices to deter entry D. Government price control

Q23. Each firm in the Cournot model assumes that rivals’ output is A. Changing continuously B. Fixed C. Zero D. Increasing

Q26. Which of the following industries is most likely an oligopoly? A. Local farming B. Shoe polishing C. Airline industry D. Street vending

Q22. In the Cournot model, firms decide output A. Simultaneously B. Sequentially C. Randomly D. By government rule

Q25. In oligopoly, a firm’s decision depends on A. Weather conditions B. Consumer income only C. Actions of rival firms D. Government budget

Q21. The Cournot model assumes firms compete by choosing: A. Price B. Output
C. Advertising D. Quality