Topic Question numbers




Indir 0.56 Mb.
TitleTopic Question numbers
Page2/5
Date conversion23.05.2013
Size0.56 Mb.
TypeTopic
Sourcehttp://jsher.myclassupdates.com/sitebuildercontent/sitebuilderfiles/chap025.rtf
1   2   3   4   5

Efficiency aspects


Type: D Topic: 4 E: 465-466 MI: 221-222

79. Monopolistically competitive industries are inefficient because:

A) they realize diseconomies of scale.

B) advertising costs retard technological advance and product development.

C) monopolistically competitive industries are overpopulated with firms whose plants are underutilized.

D) monopolistically competitive sellers engage in misleading advertising.

Answer: C


Type: A Topic: 4 E: 466 MI: 222

80. The economic inefficiencies of monopolistic competition may be offset by the fact that:

A) advertising expenditures shift the average cost curve upward.

B) available capacity is fully utilized.

C) resources are optimally allocated to the production of the product.

D) consumers have a number of variations of the product from which to choose.

Answer: D


Type: A Topic: 4 E: 465-466 MI: 221-222

81. Inefficiencies occur under monopolistic competition because:

A) each firm's demand curve becomes more elastic as we move down the curve.

B) each firm's marginal revenue curve coincides with its demand curve.

C) each firm's downsloping demand curve is tangent to the ATC curve in the long run.

D) entry barriers greatly restrict the entry of new firms.

Answer: C


Type: F Topic: 4 E: 466 MI: 222

82. A significant benefit of monopolistic competition compared with pure competition is:

A) less likelihood of X-inefficiency.

B) improved resource allocation.

C) greater product variety.

D) stronger incentives to achieve economies of scale.

Answer: C


Type: A Topic: 4 E: 466 MI: 222

83. Product variety is likely to be greater in:

A) monopolistic competition than in pure competition.

B) pure competition than in monopolistic competition.

C) homogenous oligopoly than in monopolistic competition.

D) homogenous oligopoly than in differentiated oligopoly.

Answer: A


Type: A Topic: 4 E: 466 MI: 222

84. Which of the following is correct?

A) The excess capacity problem diminishes as the monopolistically competitive firm's demand curve becomes less elastic.

B) The excess capacity problem means that monopolistically competitive firms typically produce at some point on the rising segment of their average total cost curve.

C) The greater the degree of product variation, the lesser is the excess capacity problem.

D) The greater the degree of product variation, the greater is the excess capacity problem.

Answer: D


Type: A Topic: 4 E: 465 MI: 221

85. In monopolistically competitive markets resources are:

A) overallocated because long-run equilibrium occurs where price exceeds marginal cost.

B) underallocated because long-run equilibrium occurs where price exceeds marginal cost.

C) overallocated because long-run equilibrium occurs where marginal cost exceeds price.

D) underallocated because long-run equilibrium occurs where marginal cost exceeds price.

Answer: B


Type: A Topic: 4 E: 465 MI: 221

86. In long-run equilibrium a monopolistically competitive producer achieves:

A) neither productive efficiency nor allocative efficiency.

B) both productive efficiency and allocative efficiency.

C) productive efficiency, but not allocative efficiency.

D) allocative efficiency, but not productive efficiency.

Answer: A


Type: A Topic: 4 E: 465-466 MI: 221-222

87. The less elastic a monopolistic competitor's long-run demand curve, the:

A) greater its excess capacity.

B) lower its price relative to that of a pure competitor having the same cost curves.

C) higher its long-run economic profit.

D) lower its average total cost at its equilibrium level of output.

Answer: A


Type: A Topic: 4 E: 465 MI: 221

88. The more elastic a monopolistic competitor's long-run demand curve, the:

A) greater its excess capacity.

B) the higher its price relative to that of a pure competitor having the same cost curves.

C) lower its long-run profit.

D) lower its average total cost at its equilibrium level of output.

Answer: D


Oligopoly: definition; characteristics


Type: A Topic: 5 E: 467 MI: 223 Status: New

89. In which of these continuums of degrees of competition (highest to lowest) is oligopoly properly placed?

A) pure competition, oligopoly, pure monopoly, monopolistic competition

B) oligopoly, pure competition, monopolistic competition, pure monopoly

C) monopolistic competition, pure competition, pure monopoly, oligopoly

D) pure competition, monopolistic competition, oligopoly, pure monopoly

Answer: D


Type: D Topic: 5 E: 467 MI: 223

90. The term oligopoly indicates:

A) a one-firm industry.

B) many producers of a differentiated product.

C) a few firms producing either a differentiated or a homogeneous product.

D) an industry whose four-firm concentration ratio is low.

Answer: C


Type: A Topic: 5 E: 467 MI: 223

91. In an oligopolistic market:

A) one firm is always dominant.

B) products may be standardized or differentiated.

C) the four largest firms account for 20 percent or less of total sales.

D) the industry is monopolistically competitive.

Answer: B


Type: D Topic: 5 E: 467-468 MI: 223-224

92. Oligopolistic industries are characterized by:

A) a few dominant firms and substantial entry barriers.

B) a few dominant firms and no barriers to entry.

C) a large number of firms and low entry barriers.

D) a few dominant firms and low entry barriers.

Answer: A


Type: A Topic: 5 E: 467 MI: 223

93. The automobile, household appliance, and automobile tire industries are all illustrations of:

A) homogeneous oligopoly. C) pure monopoly.

B) monopolistic competition. D) differentiated oligopoly.

Answer: D


Type: C Topic: 5 E: 467 MI: 223

94. Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a differentiated oligopolist in a highly concentrated industry?

A) Subway Sandwiches B) Pittsburgh Plate Glass C) Ford Motor Company D) Kaiser Aluminum.

Answer: C


Type: C Topic: 5 E: 467 MI: 223

95. Use your basic knowledge and your understanding of market structures to answer this question. Which of the following companies most closely approximates a homogenous oligopolist in a highly concentrated industry?

A) Kellogg B) Pittsburgh Plate Glass C) Ford Motor Company D) Starbucks Coffee.

Answer: B


Type: A Topic: 5 E: 467 MI: 223

96. The mutual interdependence that characterizes oligopoly arises because:

A) the products of various firms are homogeneous.

B) the products of various firms are differentiated.

C) a small number of firms produce a large proportion of industry output.

D) the demand curves of firms are kinked at the prevailing price.

Answer: C


Type: A Topic: 5 E: 467 MI: 223

97. Barriers to entry in oligopolistic industries may consist of:

A) diseconomies of scale. C) ownership of essential resources.

B) diminishing returns. D) patent expirations.

Answer: C


Type: A Topic: 5 E: 467 MI: 223

98. The copper, aluminum, cement, and industrial alcohol industries are examples of:

A) interproduct competition. C) monopolistic competition.

B) homogeneous oligopoly. D) differentiated oligopoly.

Answer: B


Type: A Topic: 5 E: 467 MI: 223

99. Which of the following is the best example of oligopoly?

A) women's dress manufacturing B) automobile manufacturing C) restaurants D) cotton farming

Answer: B


Type: A Topic: 5 E: 467 MI: 223

100. If there are significant economies of scale in an industry, then:

A) a firm that is large may be able to produce at a lower unit cost than can a small firm.

B) a firm that is large will have to charge a higher price than will a small firm.

C) entry to that industry will be easy.

D) firms must differentiate their products to earn economic profits.

Answer: A


Type: A Topic: 5 E: 472 MI: 228

101. In which of the following market models do demand and marginal revenue diverge?

A) pure monopoly, oligopoly, and monopolistic competition

B) pure monopoly, oligopoly, and pure competition

C) pure monopoly only

D) oligopoly only

Answer: A


Type: A Topic: 5 E: 471 MI: 227

102. Oligopoly is difficult to analyze primarily because:

A) the number of firms is too large to make collusion understandable.

B) the price and output decisions of any one firm depend on the reactions of its rivals.

C) output may be either homogenous or differentiated.

D) neither allocative nor productive efficiency is achieved.

Answer: B


Type: A Topic: 5 E: 471 MI: 227

103. Oligopoly is more difficult to analyze than other market models because:

A) the number of firms is so large that market behavior cannot be accurately predicted.

B) the marginal cost and marginal revenue curves of an oligopolist play no part in the determination of equilibrium price and quantity.

C) of mutual interdependence and the fact that oligopoly outcomes are less certain than in other market models.

D) unlike the firms of other market models, it cannot be assumed that oligopolists are profit maximizers.

Answer: C


Type: A Topic: 5 E: 467 MI: 223

104. Which of the following is an illustration of differentiated oligopoly?

A) the aluminum industry C) the soft drink industry

B) the steel industry D) retail stores in large cities

Answer: C


Type: A Topic: 5 E: 467 MI: 223

105. Which of the following industries is an illustration of homogeneous oligopoly?

A) household laundry products B) personal computers C) aluminum D) the auto industry

Answer: C

Type: D Topic: 5 E: 467 MI: 223

106. Differentiated oligopoly exists where a small number of firms are:

A) producing goods that differ in terms of quality and design.

B) setting price and output collusively.

C) setting price and output independently.

D) producing virtually identical products.

Answer: A


Type: D Topic: 5 E: 467 MI: 223

107. Homogeneous oligopoly exists where a small number of firms are:

A) producing virtually identical products. C) setting price and output collusively.

B) setting price and output independently. D) producing differentiated products.

Answer: A


Type: D Topic: 5 E: 467 MI: 223

108. Oligopolistic industries:

A) are characterized by a relatively large number of small sellers.

B) may produce either standardized or differentiated products.

C) always produce differentiated products.

D) always produce standardized products.

Answer: B


Type: A Topic: 5 E: 467 MI: 223

109. Which of the following is a unique feature of oligopoly?

A) mutual interdependence C) product differentiation

B) advertising expenditures D) nonprice competition

Answer: A


Type: A Topic: 5 E: 467 MI: 223

110. Prices are likely to be least flexible:

A) in oligopoly. C) where product demand is inelastic.

B) in monopolistic competition. D) in pure competition.

Answer: A


Type: D Topic: 5 E: 467 MI: 223

111. Mutual interdependence means that each oligopolistic firm:

A) faces a perfectly elastic demand for its product.

B) must consider the reactions of its rivals when it determines its price policy.

C) produces a product identical to those of its rivals.

D) produces a product similar but not identical to the products of its rivals.

Answer: B


Type: A Topic: 5 E: 467 MI: 223

112. Clear-cut mutual interdependence with respect to the price-output policies exists in:

A) pure monopoly B) oligopoly C) monopolistic competition D) pure competition

Answer: B


Concentration ratio; Herfindahl Index


Type: D Topic: 6 E: 468 MI: 224

113. Concentration ratios measure the:

A) geographic location of the largest corporations in each industry.

B) degree to which product price exceeds marginal cost in various industries.

C) percentage of total sales accounted for by the four largest firms in the industry.

D) number of firms in an industry.

Answer: C


Type: A Topic: 6 E: 468 MI: 224

114. If the four-firm concentration ratio for industry X is 80:

A) the four largest firms account for 80 percent of total sales.

B) each of the four largest firms accounts for 20 percent of total sales.

C) the four largest firms account for 20 percent of total sales.

D) the industry is monopolistically competitive.

Answer: A


Type: A Topic: 6 E: 468 MI: 224

115. An industry having a four-firm concentration ratio of 85 percent:

A) approximates pure competition. C) is a pure monopoly.

B) is monopolistically competitive. D) is an oligopoly.

Answer: D


Type: A Topic: 6 E: 468 MI: 224

116. As a general rule, oligopoly exists when the four-firm concentration ratio:

A) exceeds the Herfindahl index. C) is 40 percent or more.

B) is less than the Herfindahl index. D) is 15 percent or more.

Answer: C


Type: A Topic: 6 E: 469 MI: 225

117. Aluminum competes with copper in the market for power transmission lines. This illustrates:

A) mutual interdependence. C) interindustry competition.

B) differentiated oligopoly. D) homogeneous oligopoly.

Answer: C


Type: A Topic: 6 E: 469 MI: 225

118. The Herfindahl index for a pure monopolist is:

A) 100. B) 10,000. C) 100,000. D) 10.

Answer: B


Type: A Topic: 6 E: 469 MI: 225

119. Industries X and Y both have four-firm concentration ratios of 65 percent, but the Herfindahl index for X is 1,500 while that for Y is 2,000. These data suggest:

A) greater market power in X than in Y.

B) greater market power in Y than in X.

C) that X is more technologically progressive than Y.

D) that price competition is stronger in Y than in X.

Answer: B


Type: A Topic: 6 E: 468 MI: 224

120. Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that:

A) price leadership exists in this industry.

B) the concentration ratio is more than 80 percent.

C) this industry is a differentiated oligopoly.

D) the firms in this industry face a kinked demand curve.

Answer: B


Type: A Topic: 6 E: 468 MI: 224

121. The four-firm sales concentration ratio for an industry measures the:

A) geographic concentration of firms.

B) extent to which the four largest firms dominate the production of a good.

C) percentage of the industry's capital facilities owned by the four largest firms.

D) degree of X-inefficiency in the industry.

Answer: B


Type: A Topic: 6 E: 468 MI: 224

122. Concentration ratios:

A) may overstate the degree of competition because they ignore imported products.

B) may overstate the degree of competition because interindustry competition is ignored.

C) may understate the degree of competition because they ignore imported products.

D) provide detailed insights as to the price and output behavior of firms which comprise the various industries.

Answer: C


Type: A Topic: 6 E: 468-469 MI: 224-225

123. If a product such as cement or bricks is costly to ship and, therefore, markets are very localized, the national concentration ratio for that industry:

A) will be greater than 50 percent.

B) may understate the degree of monopoly.

C) may overstate the degree of monopoly.

D) will yield an accurate impression of the degree of monopoly.

Answer: B


Type: A Topic: 6 E: 469 MI: 225

124. Concentration ratios may be inaccurate indicators of the degree of monopoly power in an industry because:

A) they include interindustry competition.

B) foreign competition is not considered.

C) they are only calculated for local and regional markets.

D) they do not distinguish between normal and economic profit.

Answer: B


Type: A Topic: 6 E: 468 MI: 224

125. If an industry evolves from monopolistic competition to oligopoly, we would expect:

A) the four-firm concentration ratio to decrease.

B) the four-firm concentration ratio to increase.

C) the four-firm concentration ratio to remain the same.

D) barriers to entry to weaken.

Answer: B


Type: D Topic: 6 E: 469 MI: 225

126. Interindustry competition means that:

A) in oligopolistic industries a few large firms compete with one another in bidding down product price.

B) in some markets the producers of a particular product might face competition from products produced by other industries.

C) firms that sell a product at one stage of production are faced with firms that buy the product at the next stage of production.

D) in most industries there are usually a number of firms producing identical products.

Answer: B


Type: A Topic: 6 E: 469 MI: 225

127. If you sum the squares of the market shares of each firm in an industry (as measured by percent of industry sales), you are calculating:

A) the four-firm concentration ratio. C) the degree of collusion.

B) the Herfindahl index. D) the Lerner index.

Answer: B


Type: A Topic: 6 E: 469 MI: 225

128. The Herfindahl Index:

A) measures the prices charged by oligopolistic manufacturers.

B) is another name for the four-firm concentration ratio.

C) tells us whether oligopolistic firms are engaging in collusion.

D) gives much greater weight to larger firms than to smaller firms in an industry.

Answer: D


Type: A Topic: 6 E: 469 MI: 225

129. If the four-firm concentration ratio in an oligopolistic industry is 100 percent and each firm has an equal percentage of sales, the Herfindahl Index is:

A) 10,000. B) 2,500. C) 3,750. D) 1,000.

Answer: B


Type: A Topic: 6 E: 469 MI: 225

130. Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl Index for this industry is:

A) 2,525. B) 1,600. C) 2,200. D) 80.

Answer: C


Type: A Topic: 6 E: 469 MI: 225

131. Suppose the Herfindahl Indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that:

A) market power is greatest in industry A.

B) market power is greatest in industry B.

C) market power is greatest in industry C.

D) industry A is more monopolistic than industry C.

Answer: C


Use the following to answer questions 132-136:





Type: T Topic: 6 E: 468 MI: 224

132. The industry characterized by the above information is:

A) an oligopoly. C) a purely competitive industry.

B) a monopolistically competitive industry. D) a pure monopoly.

Answer: A


Type: T Topic: 6 E: 468 MI: 224

133. The four-firm concentration ratio for the above industry is:

A) 100 percent.

B) indeterminate, since we don't know which four firms are included.

C) 80 percent.

D) 20 percent.

Answer: C


Type: T Topic: 6 E: 469 MI: 225

134. The Herfindahl Index for the above industry is:

A) 1,600. B) 1,800. C) 18,000. D) 80.

Answer: B


Type: T Topic: 6 E: 469 MI: 225

135. If all the firms in the above industry merged into a single firm, the Herfindahl Index would become:

A) 100. B) 1,000. C) 10,000. D) 100,000.

Answer: C


Type: T Topic: 6 E: 468-469 MI: 224-225

136. Suppose that firms in this industry miraculously split up such that there were 100 firms, each with a one percent market share. The four-firm concentration ratio and the Herfindahl Index respectively would be:

A) 100 percent and 10,000. B) 4 percent and 4. C) 100 percent and 16. D) 4 percent and 16.

Answer: D


Use the following to answer questions 137-140:





Type: A Topic: 6 E: 468 MI: 224 Status: New

137. Refer to the above data. The four-firm concentration ratio for this industry is:

A) 90 percent.

B) 95 percent.

C) 100 percent.

D) indeterminate, because we don't know which four firms are included.

Answer: B


Type: A Topic: 6 E: 469 MI: 225 Status: New

138. Refer to the above data. The Herfindahl Index for this industry is:

A) 95. B) 1000. C) 2925. D) 2950.

Answer: D


Type: A Topic: 6 E: 467-468 MI: 223-224 Status: New

139. Refer to the above data. This industry illustrates:

A) pure competition. B) monopolistic competition. C) oligopoly. D) pure monopoly.

Answer: C


Type: A Topic: 6 E: 468-469 MI: 224-225 Status: New

140. Refer to the data above. If Firm B merged with Firm C, the industry's four-firm concentration ratio would ____ and its Herfindahl Index would ____:

A) rise; rise. B) fall; rise C) remain the same; rise. D) remain the same; fall.

Answer: C

1   2   3   4   5

Similar:

Topic Question numbers iconTopic Question numbers

Topic Question numbers iconTopic Question numbers

Topic Question numbers iconTopic Question numbers

Topic Question numbers iconTo be an effective learning tool the Discussion Thread questions require your ACTIVE discussion of the topic in answering the question AND in discussing the topic with at least two of your classmates

Topic Question numbers iconBold followed by the year and then by inclusive page numbers. Notes are indicated by ‘n’ or ‘nn’ after the page number. Page numbers in italics refer to illustrations. Author Index

Topic Question numbers iconBold followed by the year and then by inclusive page numbers. Notes are indicated by ‘n’ or ‘nn’ after the page number. Page numbers in italics refer to illustrations. Author Index

Topic Question numbers iconBold followed by the year and then by inclusive page numbers. Notes are indicated by ‘n’ or ‘nn’ after the page number. Page numbers in italics refer to illustrations. Author Index

Topic Question numbers iconPORT NUMBERS (last updated 2009-02-18) The port numbers are divided into three ranges: the Well Known Ports, the Registered Ports, and the Dynamic and/or

Topic Question numbers iconCircle the best answer. For each question, write down the page number from the text that relates to it. Optional: Write any comments you have about the question

Topic Question numbers iconTopic’ ve ‘controlling’ idea bölümlerini belirleyiniz. TOPIC

Sitenizde bu düğmeye yerleştirin:
Belgeleme


The database is protected by copyright ©okulsel.net 2012
mesaj göndermek
Belgeleme
Main page