经济学原理对应练习17.doc

经济学原理对应练习17.doc

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Chapter17/MonopolisticCompetitionv767

Chapter17

MonopolisticCompetition

MultipleChoice

1. Whichofthefollowingisnotacharacteristicofmonopolisticcompetition?

a. Alargenumberofsellers.

b. Firmsarepricetakers.

c. Thereisfreeentryintothemarket.

d. Sellersofferproductsthatare,insomeway,differentfromtheircompetitors'products.

ANS:

B PTS:

1 DIF:

1 REF:

17-0

TOP:

Monopolisticcompetition MSC:

Definitional

2. Whichofthefollowingmarketswouldmostlikelyberepresentedbymonopolisticcompetition?

a. Themarketforcorn.

b. Themarketforcabletelevisionservice.

c. Themarketfor#2woodenpencils.

d. Themarketforclothing.

ANS:

D PTS:

1 DIF:

2 REF:

17-0

TOP:

Monopolisticcompetition MSC:

Interpretive

3. 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）

ANS:

D PTS:

1 DIF:

1 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Definitional

4. Inamonopolisticallycompetitiveindustry,firmssetprice

a. equaltomarginalcostsinceeachfirmisapricetaker.

b. belowmarginalcostsinceeachfirmisapricetaker.

c. abovemarginalcostsinceeachfirmisapricesetter.

d. alwaysafractionofmarginalcostsinceeachfirmisapricesetter.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Price MSC:

Interpretive

5. Inwhichofthefollowingmarketstructuresaretherealargenumberofsellers?

（i） Monopolisticcompetition

（ii） Perfectcompetition

（iii） Oligopoly

a. （i）and（ii）only

b. （ii）and（iii）only

c. （ii）only

d. （i）,（ii）,and（iii）

ANS:

A PTS:

1 DIF:

1 REF:

17-1

TOP:

Markets MSC:

Definitional

6. Inwhichofthefollowingmarketstructuresdoesfreeentryandexitplayanimportantroleinthelong-runequilibriumoutcome?

（i） Perfectcompetition

（ii） Monopolisticcompetition

（iii） Monopoly

a. （i）only

b. （i）and（ii）only

c. （ii）and（iii）only

d. （i）,（ii）,and（iii）

ANS:

B PTS:

1 DIF:

2 REF:

17-1

TOP:

Markets MSC:

Interpretive

7. Monopolisticcompetitiondiffersfromperfectcompetitionbecauseinmonopolisticallycompetitivemarkets

a. therearebarrierstoentry.

b. allfirmscaneventuallyearneconomicprofits.

c. eachofthesellersoffersasomewhatdifferentproduct.

d. strategicinteractionsbetweenfirmsisvitallyimportant.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Markets MSC:

Interpretive

8. Onewayinwhichmonopolisticcompetitiondiffersfromoligopolyisthat

a. therearenobarrierstoentryinoligopolies.

b. inoligopolymarketsthereareonlyafewsellers.

c. allfirmsinanoligopolyeventuallyearnzeroeconomicprofits.

d. strategicinteractionsbetweenfirmsarerarelyevidentinoligopolies.

ANS:

B PTS:

1 DIF:

2 REF:

17-1

TOP:

Markets MSC:

Interpretive

9. Asimilaritybetweenmonopolyandmonopolisticcompetitionisthat,inbothmarketstructures,

a. strategicinteractionsamongsellersareimportant.

b. thereareasmallnumberofsellers.

c. sellersarepricemakersratherthanpricetakers.

d. productdifferentiationisimportant.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Markets MSC:

Interpretive

10. Aprofit-maximizingfirminamonopolisticallycompetitivemarketdiffersfromafirminaperfectlycompetitivemarketbecausethefirminthemonopolisticallycompetitivemarket

a. ischaracterizedbymarket-sharemaximization.

b. hasnobarrierstoentry.

c. facesadownward-slopingdemandcurveforitsproduct.

d. facesahorizontaldemandcurveatthemarketclearingprice.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Markets MSC:

Interpretive

11. Theprofit-maximizingruleforafirminamonopolisticallycompetitivemarketistoalwaysselectthequantityatwhich

a. marginalrevenueisequaltomarginalcost.

b. averagetotalcostisequaltomarginalrevenue.

c. averagetotalcostisequaltoprice.

d. averagerevenueexceedsaveragetotalcost.

ANS:

A PTS:

1 DIF:

2 REF:

17-1

TOP:

Profitmaximization MSC:

Interpretive

12. Aprofit-maximizingfirminamonopolisticallycompetitivemarketischaracterizedbywhichofthefollowing?

a. Averagerevenueexceedsmarginalrevenue

b. Marginalrevenueexceedsaveragerevenue

c. Averagerevenueisequaltomarginalrevenue

d. Revenueisalwaysmaximizedalongwithprofit

ANS:

A PTS:

1 DIF:

2 REF:

17-1

TOP:

Price MSC:

Interpretive

Figure17-1

13. RefertoFigure17-1.Whichofthegraphsdepictsthesituationforaprofit-maximizingfirminamonopolisticallycompetitivemarket?

a. Panela

b. Panelb

c. Panelc

d. Paneld

ANS:

A PTS:

1 DIF:

2 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Interpretive

14. RefertoFigure17-1.IfafirminamonopolisticallycompetitivemarketwasproducingthelevelofoutputdepictedasQdinpanel（d）,itwould

a. notbemaximizingitsprofit.

b. beminimizingitslosses.

c. belosingmarketsharetootherfirmsinthemarket.

d. beoperatingatexcesscapacity.

ANS:

A PTS:

1 DIF:

2 REF:

17-1

TOP:

Profitmaximization MSC:

Analytical

15. RefertoFigure17-1.Thefirmdepictedinpanelbfacesahorizontaldemandcurve.Ifpanelbdepictsaprofit-maximizingfirm,

a. itcouldbeoperatingineitheraperfectlycompetitivemarketorinamonopolisticallycompetitivemarket.

b. itwouldnothaveexcesscapacityinitsproductionaslongasitisearningzeroeconomicprofit.

c. itisabletochoosethepriceatwhichitsellsitsproduct.

d. thefirmcanalwaysraiseitsprofitbyincreasingproductionsinceconsumerswillbuyasmuchasthefirmcanproduce.

ANS:

B PTS:

1 DIF:

2 REF:

17-1

TOP:

Profitmaximization MSC:

Interpretive

16. Productdifferentiationcausesthesellerofagoodtofacewhattypeofdemandcurve?

a. Downwardsloping

b. Vertical

c. Horizontal

d. Anyoftheabovecouldbecorrectsinceproductdifferentiationdoesnotaffecttheshapeofthedemandcurve.

ANS:

A PTS:

1 DIF:

2 REF:

17-1

TOP:

Demandcurve MSC:

Interpretive

Figure17-2

17. RefertoFigure17-2.Whichofthegraphsshownwouldbeconsistentwithafirminamonopolisticallycompetitivemarketthatisearningapositiveprofit?

a. Panela

b. Panelb

c. Panelc

d. Paneld

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Interpretive

18. RefertoFigure17-2.Whichofthegraphsshownwouldbeconsistentwithafirminamonopolisticallycompetitivemarketthatisdoingitsbestbutstilllosingmoney?

a. Panela

b. Panelb

c. Panelc

d. Paneld

ANS:

B PTS:

1 DIF:

2 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Interpretive

19. RefertoFigure17-2.Whichofthegraphsdepictsamonopolisticallycompetitivefirminlong-runequilibrium?

a. Panela

b. Panelb

c. Panelc

d. Noneoftheaboveiscorrect.

ANS:

D PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

20. Intheshortrun,afirminamonopolisticallycompetitivemarketoperatesmuchlikea

a. firminaperfectlycompetitivemarket.

b. firminanoligopoly.

c. monopolist.

d. monopsonist.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Interpretive

21. Amonopolisticallycompetitivefirmchooses

a. thequantityofoutputtoproduce,butthemarketdeterminesprice.

b. theprice,butcompetitioninthemarketdeterminesthequantity.

c. price,butoutputisdeterminedbyacartelproductionquota.

d. thequantityofoutputtoproduceandthepriceatwhichitwillsellitsoutput.

ANS:

D PTS:

1 DIF:

2 REF:

17-1

TOP:

Monopolisticcompetition MSC:

Interpretive

22. Iffirmsinamonopolisticallycompetitivemarketareearningpositiveprofits,then

a. firmswilllikelybesubjecttoregulation.

b. barrierstoentrywillbestrengthened.

c. somefirmsmustexitthemarket.

d. newfirmswillenterthemarket.

ANS:

D PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

23. Iffirmsinamonopolisticallycompetitivemarketareearningeconomicprofits,whichofthefollowingscenarioswouldbestdescribethechangeexistingfirmswouldfaceasthemarketadjuststothelong-runequilibrium?

a. Anincreaseindemandforeachfirm

b. Adecreaseindemandforeachfirm

c. Adownwardshiftinthemarginalcostcurveforeachfirm

d. Anupwardshiftinthemarginalcostcurveforeachfirm

ANS:

B PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

24. Iffirmsinamonopolisticallycompetitivemarketareincurringeconomiclosses,whichofthefollowingscenarioswouldbestdescribethechangeexistingfirms（whoareabletostayinthemarket）wouldfaceasthemarketadjuststothelong-runequilibrium?

a. Adownwardshiftinthemarginalcostcurveforeachfirm

b. Anupwardshiftinthemarginalcostcurveforeachfirm

c. Adecreaseindemandforeachfirm

d. Anincreaseindemandforeachfirm

ANS:

D PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

Figure17-3

Thelinesinthefiguresbelowillustratethepotentialeffectofentryandexitinamonopolisticallycompetitivemarketoneitherthedemandcurveorthemarginalcostcurveofexistingfirms.

25. RefertoFigure17-3.Panel（d）illustratesthechangethatwouldoccurifexistingfirmsfaced

a. long-runeconomiclosses.

b. adecreaseinthediversityofproductsofferedinthemarket.

c. newentrantsinthemarket.

d. firmsexitingthemarket.

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

26. RefertoFigure17-3.Whichofthediagramsillustratestheimpactofsomeexistingfirmsleavingthemarket?

a. Panela

b. Panelb

c. Panelc

d. Paneld

ANS:

C PTS:

1 DIF:

2 REF:

17-1

TOP:

Long-runequilibrium MSC:

Interpretive

27. Inmonopolisticallycompetitivemarkets,positiveeconomicprofits

a. suggestthatsomeexistingfirmswillexitthemarket.

b. suggestthatnewf