Lesson 4.4.2

4.4.2 Collusion, non-price competition and concentration ratios Quiz: OCR Economics, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 4.4.2, Collusion, non-price competition and concentration ratios: 20 multiple choice questions for the OCR Economics (H460), Unit 4: Market structures, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What does a high four-firm concentration ratio indicate about a market?

    • Perfect competition
    • Zero monopoly power
    • High market dominance
    • Low entry barriers

  2. What term describes formal, explicit agreements between firms to fix prices or limit output?

    • Overt collusion
    • Price leadership
    • Non-price competition
    • Tacit collusion

  3. What type of collusion occurs without formal agreements, often following a price leader?

    • Tacit collusion
    • Predatory pricing
    • Overt collusion
    • Vertical integration

  4. Five firms have market shares of 30%, 20%, 15%, 10%, and 5%. What is CR3?

    • 80%
    • 75%
    • 65%
    • 50%

  5. What is a formal organisation of sellers that colludes to control market price and supply?

    • Cartel
    • Monopsony
    • Monopoly
    • Duopoly

  6. Which of the following is an example of non-price competition in an oligopoly?

    • Discount sales
    • Loyalty schemes
    • Limit pricing
    • Price cutting

  7. Why do collusive cartels frequently collapse over time?

    • Government subsidies
    • High entry barriers
    • Perfect demand elasticity
    • Incentive to cheat

  8. According to kinked demand curve theory, what happens if one oligopolist raises its price?

    • Rivals hold prices
    • Rivals raise prices
    • Sales increase sharply
    • Demand becomes inelastic

  9. Under the kinked demand curve model, what do rivals do if a firm lowers its price?

    • Exit the industry
    • Raise their prices
    • Match the cut
    • Ignore the change

  10. What term describes a market where dominant firms set prices that smaller firms subsequently match?

    • Price leadership
    • Limit pricing
    • Cost-plus pricing
    • First-mover advantage

  11. If CR4 in an industry is 85%, how is this market best classified?

    • Monopolistic competition
    • Pure monopoly
    • Oligopoly
    • Perfect competition

  12. What pricing strategy involves setting prices low enough to deter potential new entrants?

    • Limit pricing
    • Peak pricing
    • Predatory pricing
    • Penetration pricing

  13. What illegal pricing strategy lowers prices below average variable cost to force rivals out?

    • Dynamic pricing
    • Price discrimination
    • Limit pricing
    • Predatory pricing

  14. A supermarket spends millions on advertising campaigns and improved packaging. What strategy is this?

    • Overt collusion
    • Price war
    • Horizontal integration
    • Product differentiation

  15. Which market condition makes collusion between firms most stable and effective?

    • Few dominant sellers
    • Differentiated products
    • High demand volatility
    • Unregulated market entry

  16. What is calculated by adding together the market shares of the largest industry firms?

    • Producer surplus
    • Concentration ratio
    • Marginal revenue
    • Price elasticity

  17. An oil cartel member secretly boosts output beyond its agreed quota. What is this called?

    • Arbitrage
    • Cheating
    • Diversification
    • Hedging

  18. Why is the demand curve for an oligopolist assumed to be kinked?

    • Perfect information
    • Constant marginal cost
    • Zero barriers entry
    • Asymmetric rival responses

  19. What key oligopoly feature means one firm's actions directly affect its competitors' strategies?

    • Independence
    • Atomicity
    • Interdependence
    • Contestability

  20. In a market of 10 equal-sized firms, what is the CR4 value?

    • 10%
    • 40%
    • 25%
    • 100%

All OCR Economics quizzes