ISM Exam INTE Topic 2 Question 4 Discussion

Actual exam question for ISM's INTE exam

Question #: 4
Topic #: 2

Which of the following describes a market structure where there are few sellers and many buyers and where price is controlled by either an industry leader or a cartel?

AMonopsony

BPerfect competition

CMonopoly

DOligopoly

Show Suggested Answer

Suggested Answer: D

An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. Reference:

* Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.

* Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.

by Marquetta at Jun 29, 2024, 10:09 AM

Limited Time Offer

25%

Off

Get Premium INTE Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Blondell

4 months ago

I bet the professor is just trying to see if we're awake with this one. D) Oligopoly is the only logical choice here. If they wanted to really mess with us, they'd throw in 'duopoly' as an option!

upvoted 0 times

...

Ruby

4 months ago

Easy peasy, it's D) Oligopoly all the way! I could probably explain the difference between oligopoly and monopoly in my sleep at this point. Time to flex my econ muscles!

upvoted 0 times

Rosalyn

3 months ago

C) Monopoly is when there is only one seller in the market.

upvoted 0 times

...

Laurel

3 months ago

It's definitely not A) Monopsony or B) Perfect competition.

upvoted 0 times

...

Ilda

4 months ago

Oligopoly is when there are a few big players controlling the market.

upvoted 0 times

...

Galen

4 months ago

I agree, D) Oligopoly is the correct answer.

upvoted 0 times

...

Tegan

5 months ago

Hmm, this one's tricky. I'm torn between C) Monopoly and D) Oligopoly. But I think the 'few sellers' part makes D) Oligopoly the better fit. Let's hope the professor doesn't pull a fast one on us!

upvoted 0 times

Jennifer

3 months ago

I'm leaning towards D) Oligopoly too. Let's hope we're on the right track!

upvoted 0 times

...

Alana

3 months ago

Yeah, I see your point. It does seem like D) Oligopoly fits better in this case.

upvoted 0 times

...

Christoper

3 months ago

I agree, I think D) Oligopoly makes more sense with the 'few sellers' description.

upvoted 0 times

...

Johnathon

3 months ago

Let's go with D) Oligopoly then. Hopefully, we got it right!

upvoted 0 times

...

Jina

4 months ago

Yeah, I agree. The 'few sellers' part definitely points towards Oligopoly.

upvoted 0 times

...

Bethanie

4 months ago

I think you're right, D) Oligopoly does seem to fit the description better.

upvoted 0 times

...

Carma

5 months ago

I'm going with C) Monopoly. When there's only one seller controlling the price, that's a monopoly, right? Seems like the most obvious choice here.

upvoted 0 times

Kenneth

4 months ago

I agree, when there's only one seller in control, it's definitely a monopoly.

upvoted 0 times

...

Reta

4 months ago

I think you're right, C) Monopoly does sound like the best choice here.

upvoted 0 times

...

Sherell

5 months ago

I believe it's D) Oligopoly because there are few sellers controlling the market.

upvoted 0 times

...

Ruby

5 months ago

I'm not sure, but I think it might be C) Monopoly.

upvoted 0 times

...

Kimbery

5 months ago

I agree with Krissy, an oligopoly fits the description.

upvoted 0 times

...

Alecia

5 months ago

Definitely D) Oligopoly. The description of few sellers and many buyers with price control by industry leaders or a cartel is a textbook definition of an oligopoly market structure.

upvoted 0 times

Mariko

4 months ago

Oligopoly makes sense in this scenario.

upvoted 0 times

...

Edward

4 months ago

I agree, it's definitely D) Oligopoly.

upvoted 0 times

...

Krissy

5 months ago

I think the answer is D) Oligopoly.

upvoted 0 times

...