曼昆《经济学原理》微观第五版测试题库17

1153Chapter 17OligopolyTRUE/FALSE1. The essence of an oligopolistic market is that there are only a few sellers.ANS: T DIF: 1 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Oligopoly MSC: Definitional2. Game theory is just as necessary for understanding competitive or monopoly markets as it is for understanding oligopolistic markets.ANS: F DIF: 2 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Oligopoly | Game theoryMSC: Interpretive3. In a competitive market, strategic interactions among the firms are not important.ANS: T DIF: 1 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Game theory | Competitive marketsMSC: Interpretive4. For a firm, strategic interactions with other firms in the market become more important as the number of firms in the market becomes larger.ANS: F DIF: 2 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Oligopoly | Game theoryMSC: Interpretive5. Suppose three firms form a cartel and agree to charge a specific price for their output. Each individual firm has an incentive to maintain the agreement because the firms individual profits will be the greatest under the cartel arrangement.ANS: F DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Collusion MSC: Interpretive6. If firms in an oligopoly agree to produce according to the monopoly outcome, they will produce the same level of output as they would produce in a Nash equilibrium.ANS: F DIF: 1 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly | CooperationMSC: Interpretive7. Whether an oligopoly consists of 3 firms or 10 firms, the level of output likely will be the same.ANS: F DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly MSC: Interpretive8. Cartels with a small number of firms have a greater probability of reaching the monopoly outcome than do cartels with a larger number of firms.ANS: T DIF: 1 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Cartels MSC: Interpretive9. As the number of firms in an oligopoly becomes very large, the price effect disappears.ANS: T DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly MSC: Interpretive10. If all of the firms in an oligopoly successfully collude and form a cartel, then total profit for the cartel is equal to what it would be if the market were a monopoly.ANS: T DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Cartels MSC: Interpretive11. As the number of firms in an oligopoly increases, the magnitude of the price effect increases.ANS: F DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly MSC: Interpretive1154 Chapter 17/Oligopoly12. All examples of the prisoners dilemma game are characterized by one and only one Nash equilibrium.ANS: F DIF: 3 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Nash equilibrium | Prisoners dilemmaMSC: Interpretive13. If two players engaged in a prisoners dilemma game are likely to repeat the game, they are more likely to cooperate than if they play the game only once.ANS: T DIF: 2 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Prisoners dilemmaMSC: Interpretive14. The story of the prisoners dilemma contains a general lesson that applies to any group trying to maintain cooperation among its members.ANS: T DIF: 1 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Prisoners dilemmaMSC: Interpretive15. In the prisoners dilemma game, one prisoner is always better off confessing, no matter what the other prisoner does.ANS: T DIF: 1 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Prisoners dilemmaMSC: Interpretive16. In the prisoners dilemma game, confessing is a dominant strategy for each of the two prisoners.ANS: T DIF: 2 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Prisoners dilemma | Dominant strategyMSC: Interpretive17. The game that oligopolists play in trying to reach the oligopoly outcome is similar to the game that the two prisoners play in the prisoners dilemma.ANS: T DIF: 1 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Interpretive18. In the case of oligopolistic markets, self-interest makes cooperation difficult and it often leads to an undesirable outcome for the firms that are involved.ANS: T DIF: 1 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Interpretive19. When prisoners dilemma games are repeated over and over, sometimes the threat of penalty causes both parties to cooperate.ANS: T DIF: 2 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Prisoners dilemmaMSC: Interpretive20. A tit-for-tat strategy, in a repeated game, is one in which a player starts by cooperating and then does whatever the other player did last time.ANS: T DIF: 2 REF: 17-2NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Definitional21. One way that public policy encourages cooperation among oligopolists is through antitrust law.ANS: F DIF: 1 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Antitrust MSC: Interpretive22. The Sherman Antitrust Act prohibits competing firms from even talking about fixing prices.ANS: T DIF: 1 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Sherman Antitrust Act of 1890MSC: InterpretiveChapter 17/Oligopoly 115523. Resale price maintenance prevents retailers from competing on price.ANS: T DIF: 1 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Resale price maintenanceMSC: Interpretive24. Some business practices that appear to reduce competition, such as resale price maintenance, may have legitimate economic purposes.ANS: T DIF: 2 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Resale price maintenanceMSC: Interpretive25. In 2007 the U.S. Supreme Court ruled that it was not necessary illegal for manufacturers and distributors to agree on minimum retail prices.ANS: T DIF: 2 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Resale price maintenanceMSC: Definitional26. Tying can be thought of as a form of price discrimination.ANS: T DIF: 1 REF: 17-3NAT: Analytic LOC: Oligopoly TOP: Tying MSC: Interpretive27. Policymakers should be aggressive in using their powers to place limits on firm behavior, because business practices that appear to reduce competition never have any legitimate purposes.ANS: F DIF: 2 REF: 17-4NAT: Analytic LOC: The role of government TOP: AntitrustMSC: InterpretiveSHORT ANSWER1. Even when allowed to collude, firms in an oligopoly may choose to cheat on their agreements with the rest of the cartel. Why?ANS:Individual profits can be increased at the expense of group profits if individuals cheat on the cartels cooperative agreement.DIF: 2 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Cartels MSC: Interpretive2. What effect does the number of firms in an oligopoly have on the characteristics of the market?ANS:As the number of firms increases, the equilibrium quantity of goods provided increases and price falls; the market begins to resemble a competitive one.DIF: 2 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Oligopoly MSC: Analytical1156 Chapter 17/Oligopoly3. Assume that demand for a product that is produced at zero marginal cost is reflected in the table below.Quantity Price0 $36200 $33400 $30600 $27800 $241000 $211200 $181400 $151600 $121800 $ 92000 $ 62200 $ 32400 $ 0a. What is the profit-maximizing level of production for a group of oligopolistic firms that operate as a cartel?b. Assume that this market is characterized by a duopoly in which collusive agreements are illegal. What market price and quantity will be associated with a Nash equilibrium?ANS:a. Q = 1200b. Q = 1600, P = 12DIF: 3 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Cartels MSC: Applicative4. Describe the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.ANS:The source of the tension exists because total profits are maximized when oligopolists cooperate on price and quantity by operating as a monopolist. However, individual profits can be gained by individuals cheating on their cooperative agreement. This is why cooperative agreements among members of a cartel are inherently unstable. This is evident in the problem OPEC experiences in enforcing the cooperative agreement on production and price of crude oil.DIF: 2 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Cartels MSC: Interpretive5. Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market?ANS:Output effect: Price Marginal cost = increased output will add to profitPrice effect: increased quantity is sold at a lower price = lower revenue (profit?)An oligopolist must take into account how the output and price effects will be influenced by competitors production decisions, or it must assume competitors production will not change in response to its own actions.DIF: 3 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Profit maximization | Oligopoly MSC: InterpretiveChapter 17/Oligopoly 11576. Explain how the output effect and the price effect influence the production decision of the individual oligopolist.ANS:Since the individual oligopolist faces a downward-sloping demand curve, she realizes that if she increases output, all output must be sold at a lower market price. As such, the revenue from selling the additional units at the lower market price must exceed the loss in revenue from selling all previous units at the new lower price. Otherwise, profits will fall as output (production) is increased.DIF: 2 REF: 17-1 NAT: AnalyticLOC: Oligopoly TOP: Profit maximization | Oligopoly MSC: Interpretive7. Ford and General Motors are considering expanding into the Vietnamese automobile market. Devise a simple prisoners dilemma game to demonstrate the strategic considerations that are relevant to this decision.ANS:The answer should present two strategies for each company, such as “Expand” and “Dont Expand.” To be a prisoners dilemma, each firm needs a dominant strategy, but each firm choosing its dominant strategy results in an outcome that is jointly worse than if they both chose their other strategy. A possible payoff table with payoffs (Ford, GM) isGMExpand Dont ExpandExpand (2, 2) (4, 1)FordDont Expand (1, 4) (3, 3)DIF: 3 REF: 17-2 NAT: AnalyticLOC: Oligopoly TOP: Prisoners dilemma MSC: Applicative8. Nike and Reebok (athletic shoe companies) are considering whether or not to advertise during the Super Bowl. Devise a simple prisoners dilemma game to demonstrate the strategic considerations that are relevant to this decision. Does the repeated game scenario differ from a single period game? Is it possible that a repeated game (without collusive agreements) could lead to an outcome that is better than a single-period game? Explain the circumstances in which this may be true.ANS:The answer should show that if both shoe companies decide to advertise they will both be worse off than if they did not. It should also show that each company has the individual incentive to advertise. The dominant strategy of both companies will be to advertise, regardless of what the other is doing. If the game is repeated more than once it is possible that the shoe companies will decide not to advertise in the hopes that the other company adequately understands the mutually beneficial gains that come from not advertising.DIF: 3 REF: 17-2 NAT: AnalyticLOC: Oligopoly TOP: Prisoners dilemma MSC: Applicative9. Outline the purpose of antitrust laws. What do they accomplish?ANS:The purpose of antitrust laws is to move markets toward a competitive equilibrium outcome. These laws are used to prevent behavior that would lead to excessive market power by any single firm.DIF: 2 REF: 17-3 NAT: AnalyticLOC: Oligopoly TOP: Antitrust MSC: Interpretive10. Explain the practice of resale price maintenance and discuss why it is controversial.ANS:Resale price maintenance is a requirement by producers that retailers sell their product for a price specified by the manufacturer. It is controversial because on the surface it appears to limit the ability of retailers to compete on the basis of price. However, if the manufacturer does not exercise resale price maintenance a free-rider problem may become evident among the retailers and ultimately lead to lower profits for the manufacturer.DIF: 2 REF: 17-3 NAT: AnalyticLOC: The role of government TOP: Resale price maintenanceMSC: Interpretive1158 Chapter 17/Oligopoly11. Explain the practice of tying and discuss why it is controversial.ANS:Tying is the practice of bundling goods for sale. It is controversial because it is perceived as a tool for expanding the market power of firms by forcing consumers to purchase additional products. However, economists are skeptical that a buyers willingness to pay increases just because two products are bundled together. In other words, simply bundling two products together doesnt necessarily add any value. It is more accurately believed to be a form of price discrimination.DIF: 2 REF: 17-3 NAT: AnalyticLOC: Oligopoly TOP: Tying MSC: InterpretiveSec00 - OligopolyMULTIPLE CHOICE1. In the language of game theory, a situation in which each person must consider how others might respond to his or her own actions is called a a. quantifiable situation.b. cooperative situation.c. strategic situation.d. tactical situation.ANS: C DIF: 1 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Definitional2. In general, game theory is the study of a. how people behave in strategic situations.b. how people behave when the possible actions of other people are irrelevant.c. oligopolistic markets.d. all types of markets, including competitive markets, monopolistic markets, and oligopolistic markets.ANS: A DIF: 2 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Definitional3. Which of the following statements is correct?a. Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small.b. Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets.c. Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-toe.d. Game theory is not necessary for understanding competitive or monopoly markets.ANS: D DIF: 2 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: Interpretive4. In which of the following markets are strategic interactions among firms most likely to occur?a. markets to which patent and copyright laws applyb. the market for piano lessonsc. the market for tennis ballsd. the market for cornANS: C DIF: 2 REF: 17-0NAT: Analytic LOC: Oligopoly TOP: Game theory MSC: InterpretiveChapter 17/Oligopoly 1159Sec01 - Oligopoly - Markets with Only a Few SellersMULTIPLE CHOICE1. A distinguishing feature of an oligopolistic industry is the tension between a. profit maximization and cost minimization.b. cooperation and self interest.c. producing a small amount of output and charging a price above marginal cost.d. short-run decisions and long-run decisions.ANS: B DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly MSC: Interpretive2. In studying oligopolistic markets, economists assume that a. there is no conflict or tension between cooperation and self-interest.b. it is easy for a group of firms to cooperate and thereby establish and maintain a monopoly outcome.c. each oligopolist cares only about its own profit.d. strategic decisions do not play a role in such markets.ANS: C DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Oligopoly | CooperationMSC: Interpretive3. The simplest type of oligopoly isa. monopoly.b. duopoly.c. monopolistic competition.d. oligopolistic competition.ANS: B DIF: 1 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Duopoly MSC: Interpretive4. A special kind of imperfectly competitive market that has only two firms is calleda. a two-tier competitive structure.b. an incidental monopoly.c. a doublet.d. a duopoly.ANS: D DIF: 1 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Duopoly MSC: Definitional5. An agreement between two duopolists to function as a monopolist usually breaks down because a. they cannot agree on the price that a monopolist would charge.b. they cannot agree on the output that a monopolist would produce.c. each duopolist wants a larger share of the market in order to capture more profit.d. each duopolist wants to charge a higher price than the monopoly price.ANS: C DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Duopoly MSC: Interpretive6. Which of the following statements is correct?a. If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly.b. Although the logic of self-interest decreases a duopolys price below the monopoly price, it does not push the duopolists to reach the competitive price.c. Although the logic of self-interest increases a duopolys level of output above the monopoly level, it does not push the duopolists to reach the competitive level.d. All of the above are correct.ANS: D DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Duopoly MSC: Interpretive1160 Chapter 17/Oligopoly7. Suppose that Sonny and Cher are duopolists in the music industry. In January, they agree to work together as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By February, each singer is considering breaking the agreement. What would you expect to happen next?a. Sonny and Cher will determine that it is in each singers best self interest to maintain the agreement.b. Sonny and Cher will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price will decrease.c. Sonny and Cher will each break the agreement. The new equilibrium quantity of songs will decrease, and the new equilibrium price will increase.d. Sonny and Cher will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price also will increase.ANS: B DIF: 2 REF: 17-1NAT: Analytic LOC: Oligopoly TOP: Duopoly MSC: Interpretive8. As the number of