CH.11 Monopolistic Competition文稿.docx

CH.11 Monopolistic Competition文稿.docx

《CH.11 Monopolistic Competition文稿.docx》由会员分享，可在线阅读，更多相关《CH.11 Monopolistic Competition文稿.docx（34页珍藏版）》请在冰豆网上搜索。

Chapter17

MonopolisticCompetition

MULTIPLECHOICE

1.Monopolisticcompetitionischaracterizedbywhichofthefollowingattributes?

（i）freeentry

（ii）productdifferentiation

（iii）manysellers

a.（i）and（iii）only

b.（i）and（ii）only

c.（ii）and（iii）only

d.（i）,（ii）,and（iii）ANSWER:

d. （i）,（ii）,and（iii）

TYPE:

MDIFFICULTY:

1SECTION:

17.1

2.Thephenomenonofproductdifferentiationcontrastssharplywiththephenomenonof

a.homogeneousproducts.

b.industrialproducts.

c.monopolisticcompetition.

d.productintegration.

ANSWER:

a. homogeneousproducts.TYPE:

MDIFFICULTY:

1SECTION:

17.1

3.Inamonopolisticallycompetitiveindustry,priceis

a.equaltomarginalcostsinceeachfirmisapricetaker.

b.belowmarginalcostsinceeachfirmisapricetaker.

c.abovemarginalcostsinceeachfirmisapricesetter.

d.alwaysafractionofmarginalcostsinceeachfirmisapricesetter.ANSWER:

c. abovemarginalcostsinceeachfirmisapricesetter.TYPE:

MDIFFICULTY:

2SECTION:

17.1

4.Inwhichofthefollowingmarketstructuresisthenumberofsellerslessthan“many?

”

（i）monopolisticcompetition

（ii）monopoly

（iii）oligopoly

a.（i）and（ii）only

b.（ii）and（iii）only

c.（ii）only

d.Alloftheabovearecorrect.ANSWER:

b. （ii）and（iii）only

TYPE:

MDIFFICULTY:

1SECTION:

17.1

5.Whichofthefollowingmarketstructuresfeaturesfreeentryandexit?

（i）perfectcompetition

（ii）monopolisticcompetition

（iii）monopoly

a.（i）only

b.（i）and（ii）only

c.（ii）and（iii）only

d.Alloftheabovearecorrect.ANSWER:

b. （i）and（ii）only

TYPE:

MDIFFICULTY:

2SECTION:

17.1

519

Chapter17/MonopolisticCompetitionF5511

6.Monopolisticcompetitiondiffersfromperfectcompetitionbecauseinmonopolisticallycompetitivemarkets

a.therearebarrierstoentry.

b.allfirmscaneventuallyearneconomicprofits.

c.eachofthesellersoffersasomewhatdifferentproduct.

d.strategicinteractionsbetweenfirmsisvitallyimportant.ANSWER:

c. eachofthesellersoffersasomewhatdifferentproduct.TYPE:

MDIFFICULTY:

2SECTION:

17.1

7.Onewayinwhichmonopolisticcompetitiondiffersfromoligopolyis

a.therearenobarrierstoentryinoligopolies.

b.inoligopolymarketsthereareonlyafewsellers.

c.alloligopolyfirmseventuallyearnzeroeconomicprofits.

d.strategicinteractionsbetweenfirmsarerarelyevidentinoligopolies.ANSWER:

b. inoligopolymarketsthereareonlyafewsellers.

TYPE:

MDIFFICULTY:

2SECTION:

17.1

8.Asimilaritybetweenmonopolyandmonopolisticcompetitionisthat,inbothmarketstructures,

a.strategicinteractionsamongsellersareimportant.

b.therearefewerthan“many”sellers.

c.sellersarepricemakersratherthanpricetakers.

d.productdifferentiationisimportant.

ANSWER:

c. sellersarepricemakersratherthanpricetakers.TYPE:

MDIFFICULTY:

2SECTION:

17.1

9.Aprofit-maximizingfirminamonopolisticallycompetitivemarketdiffersfromafirminaperfectlycompetitivemarketbecausethefirminthemonopolisticallycompetitivemarket

a.ischaracterizedbymarketsharemaximization.

b.hasnobarrierstoentry.

c.facesadownward-slopingdemandcurveforitsproduct.

d.facesahorizontaldemandcurveatthemarketclearingprice.ANSWER:

c. facesadownward-slopingdemandcurveforitsproduct.TYPE:

MDIFFICULTY:

2SECTION:

17.1

10.Theprofit-maximizingruleforafirminamonopolisticallycompetitivemarketistoselectthequantityatwhich

a.marginalrevenueisequaltomarginalcost.

b.averagetotalcostisequaltomarginalrevenue.

c.averagetotalcostisatitsminimumvalue.

d.averagerevenueexceedsaveragetotalcost.ANSWER:

a. marginalrevenueisequaltomarginalcost.TYPE:

MDIFFICULTY:

2SECTION:

17.1

11.Aprofit-maximizingfirminamonopolisticallycompetitivemarketischaracterizedbywhichofthefollowing?

a.Averagerevenueexceedsmarginalrevenue.

b.Marginalrevenueexceedsaveragerevenue.

c.Averagerevenueisequaltomarginalrevenue.

d.Revenueisalwaysmaximizedalongwithprofit.ANSWER:

a. Averagerevenueexceedsmarginalrevenue.TYPE:

MDIFFICULTY:

2SECTION:

17.1

Usethefiguresbelowtoanswerquestions12through14.

12.Whichofthegraphswouldmostlikelyrepresentaprofit-maximizingfirminamonopolisticallycompetitivemarket?

a.panela

b.panelb

c.panelc

d.paneldANSWER:

a. panela

TYPE:

MDIFFICULTY:

2SECTION:

17.1

13.IfafirminamonopolisticallycompetitivemarketwasproducingthelevelofoutputdepictedasQdinpaneld,itwould

a.notbemaximizingitsprofit.

b.beminimizingitslosses.

c.belosingmarketsharetootherfirmsinthemarket.

d.beoperatingatexcesscapacity.ANSWER:

a. notbemaximizingitsprofit.TYPE:

MDIFFICULTY:

2SECTION:

17.1

14.Thefirmdepictedinpanelbfacesahorizontaldemandcurve.Ifpanelbdepic