哈伯德英文版微观经济学练习c13

Microeconomics-Testbank1(Hubbard/O'Brien)Chapter13Oligopoly:FirmsinLessCompetitiveMarkets1)

Anoligopolyfirmisinanindustrycharacterizedby:A)

manyindependentfirms.B)

asmallnumberofindependentfirms.C)

onefirm.D)

asmallnumberofinterdependentfirms.2)

Afour-firmconcentrationratiomeasures:A)

thefractionofanindustry'ssalesaccountedforbythefourlargestfirms.B)

theproductionofanyfourfirmsinanindustry.C)

howthefourlargestfirmsbecamesoconcentrated.D)

thefractionofemploymentofthefourlargestfirmsinanindustry.3)

Oligopoliesaredifficulttoanalyzebecause:A)

thefirmsaresolarge.B)

demandandcostcurvesdonotexistforthesetypesofindustries.C)

howoligopolyfirmsrespondtoapricechangebyarivalisuncertain.D)

oligopoliesarearecentdevelopmentsoeconomistshavenothadtimetodevelopmodels.4)

Anoligopolyfirm'sdemandcurveis:A)

identicaltothatofaperfectcompetitivefirm.B)

identicaltothatofamonopolisticallycompetitivefirm.C)

verticalonapricequantitydiagram.D)

unknownbecausearesponseoffirmstopricechangesbyrivalsisuncertain.5)

Thevalueofthefour-firmconcentrationratiothatmanyeconomistsconsiderindicativeoftheexistenceofanoligopolyinaparticularindustryis:A)

anythinggreaterthan10percent.B)

anythinggreaterthan20percent.C)

anythinggreaterthan30percent.D)

anythinggreaterthan40percent.6)

Oligopoliesexistanddonotattractnewrivalsbecause:A)

ofcompetition.B)

ofbarrierstoentry.C)

thefirmskeepprofitsandpricessolowthatnorivalsareattracted.D)

alloftheabove.7)

WhichofthefollowingisNOTabarriertoentry?A)

OwnershipofakeyinputB)

IndustrylowestpricingC)

GovernmentimposedrestrictionsD)

Economiesofscale8)

Anexampleofabarriertoentryis:A)

productdifferentiation.B)

highprofits.C)

governmentimposedrestrictions.D)

alloftheabove.9)

Economiesofscalecanleadtoanoligopolymarketstructurebecause:A)

iflargerfirmshavelowercosts,newsmallentrantswillnotbeabletoproduceatthelowcostsachievedbythebigestablishedfirms.B)

ifeconomiesofscaleareinsignificantinproductiononlyafewfirmsareabletoproduceatthelowcostsachievedbythebigestablishedfirms.C)

afewfirmscanforcerivalstoproduceatlowlevelsofoutput.D)

afewfirmscanusehighprofitstokeepoutnewentrants.10)

Areasonthereismorecompetitionamongrestaurantsthanisfoundinlargediscountdepartmentstoresis:A)

restaurantsproduceadifferentiateproduct.B)

restaurantshavetoabidebygovernmentsanitationrules.C)

restaurantsdonothavesignificanteconomiesofscale.D)

restaurantshavemoreelasticdemandfortheirproduct.11)

Anexampleofagovernment-imposedbarrieris:A)

economiesofscale.B)

thegrantingofapatenttoaparticularfirm.C)

onefirmowningakeyinput.D)

environmentalregulations.12)

Patents,occupationallicensing,tariffsandquotasareallexamplesof:A)

government-imposedbarriers.B)

economiesofscale.C)

cutthroatcompetitivepricing.D)

ownershipofakeyinput.13)

Acartelwhosemembersadheretotheagreementistypicallyableto:A)

breakeven.B)

earnlargeprofits.C)

entirelyavoidcompetitiveforces.D)

producealargeamountofoutput.14)

Gametheoryisusefulinanalyzingoligopolybehaviorbecause:A)

tryingtomaximizeprofitsisessentiallyagameinalltypesofmarkets.B)

interactionamongafewlargefirmsarewhatdeterminesthelevelofprofits.C)

advertisingissocommonamongoligopolyfirms.D)

itexplainswhyoligopoliesfailtomakepersistentprofits.15)

Ifthereareonlytwofirmsinamarket,itisknownasa:A)

competitivemarket.B)

duopoly.C)

monopoly.D)

monopolisticallycompetitivemarket.16)

Amongthecharacteristicsofgametheoryare:A)

rulesthatdeterminewhatactionsareallowable.B)

payoffsthataretheresultsoftheinteractionamongplayers'strategies.C)

strategiesthatplayersemploytoattaintheirobjectives.D)

alloftheabove.17)

Ifthepaintingfirmsinacitysignacontractoutliningapricingplan,theyareinvolvedin:A)

pricecompetition.B)

alegalformofbusinesscontractintheUnitedStates.C)

collusion.D)

priceregulation.18)

Inanoligopolymarket:A)

pricingdecisionofallotherfirmshasnoeffectonanindividualfirm.B)

individualfirmspaynoattentiontothebehaviorofotherfirms.C)

advertisingofonefirmhasnoeffectonallotherfirms.D)

pricingdecisionofonefirmaffectsalltheotherfirms.19)

Interdependenceoffirmsismostcommonin:A)

perfectlycompetitiveindustries.B)

monopolisticindustries.C)

monopolisticallycompetitiveindustries.D)

oligopolisticindustries.20)

Acharacteristicfoundonlyinoligopoliesis:A)

breakevenlevelofprofits.B)

interdependenceoffirms.C)

independenceoffirms.D)

productsthatareslightlydifferent.21)

Anoligopolist'sbusinessstrategyincludesallofthebelowEXCEPT:A)

meetingworkerhealthandsafetystandardsrequiredofallfirms.B)

decidingtheleveloftotaloutputofanewproduct.C)

determiningtheamountofadvertisinganewproductneeds.D)

Settingtheproduct'spriceafterconsideringwhatrivalswilldo.22)

Collusion:A)

isrampantinperfectcompetitionasallfirmschargethesameprice.B)

isperfectlylegalintheU.S.C)

iseasiestamongfirmswithproductsandcoststhatareverydifferent.D)

ismoredifficultthemorefirmsthereareinanindustry.23)

MemberfirmsofacartellikeOPEChaveincentivesto:A)

argueforlargerproductionquotasforeachmemberofthecartel.B)

agreetoalowcartelproductionlevelandthenproducemorethantheirquota.C)

abidebytheirindividualproductionquotas.D)

supportequalproductionquotasforeachmember.24)

Amemberofacartelearnsmoreprofitsby:A)

byproducingtheirquotaandsellingitatthecartelprice.B)

byproducingmorethantheirquotaandsellingatapricelowerthanthecartel's.C)

byproducinglessthantheirquotaandsellingatapricehigherthanthecartel's.D)

byproducinglessthantheirquotaandsellingatapriceequaltothecartel's.25)

ThatOPECperiodicallymeetstoagreetorestrictthecartel'soiloutputandyetalmosteverymemberofOPECproducesmorethantheirownoutputquotameansOPEChasa:A)

cooperativeequilibrium.B)

noncooperativeequilibrium.C)

newpotentialentrants.D)

threatofsubstitutegoods.26)

Adominantstrategyinagametheoryanalysisofoligopolybehavioris:A)

astrategythatisthebestforafirm,nomatterwhatstrategiesotherfirmsuse.B)

thestrategythatafirmisforcedintofollowingbygovernmentpolicy.C)

colludingwithrivalstomaximizejointprofits.D)

decidingwhattodoafterallrivalshavechosentheirownstrategies.27)

Aprisoners'dilemmaleadstoa:A)

cooperativeequilibrium.B)

noncooperativeequilibrium.C)

competitiveequilibrium.D)

noncompetitiveequilibrium.28)

ANashequilibriumis:A)

wheredemandandsupplyintersect.B)

anexampleofacooperativeequilibrium.C)

whereeachplayerchoosesitsbeststrategy,giventhestrategieschosenbytheotherplayers.D)

anondominantstrategy.29)

Adominantstrategyinagamingsituationisto:A)

adoptthebeststrategyregardlessofwhatotherfirmsdo.B)

adoptthebeststrategytobenefitallfirms.C)

colludewithotherfirms.D)

chooseyourstrategyatrandom.30)

Acooperativeequilibriumresultswhenfirms:A)

choosethebeststrategyregardlessofwhatotherplayersdo.B)

choosethestrategythatmaximizesthetotalgamepayoff.C)

choosethestrategythatminimizesthepayofftootherplayers.D)

chooseastrategybyrandomchance.31)

Theprisoners'dilemmaresultsinanoncooperativeequilibriumbecause:A)

eachplayerhadagreedbeforethegamestartedtomaximizetotalpayoff.B)

eachplayerisuncertainhowotherplayerswillplaythegame.C)

eachplayerhasadominantstrategytoplayacertainwayregardlessofwhatotherplayersdo.D)

noneoftheabove.32)

Adecisiontreeisgoodatanalyzing:A)

prisoners'dilemmagames.B)

repeatablegames.C)

cooperativeequilibriumgames.D)

sequentialgames.33)

SomefirmsareabletoearnprofitsbycompetingwithadominantfirmlikeWalmartby:A)

offeringthesameproductsandservices.B)

aggressivelybuyingupsmallerrivalstomatchWalmartinitsbuyingpower.C)

finding"niches"thatWalmartdoesnotcurrentlyoccupy.D)

movingintootherindustriesthatsellproductsthatdonotcompetewithWalmart.34)

Ifacitybowstohomebuildersandrequiresthatallhomerepairandadditionconstructionbedonebylicensedbuilders,thecityhas:A)

setupanoccupationallicensingbarriertoentry.B)

increasedthequalityofhomerepairandexpansionwork.C)

ensuresthatnewentrantstotheindustryarequalifiedworkers.D)

noneoftheabove.35)

Inthelastfourdecades,thenumberofnewautomakersintheworldhasbeenverysmallcomparedtothepastbecause:A)

theautomobilecannotbeimproveduponinanywaybynewproducers.B)

newautomakerscannotobtainnecessaryinputstoproducenewcars.C)

governmentsrestrictwhocanproduceautomobiles.D)

newproducerscannotmatchtheeconomiesofscaleofexistingautomakers.36)

ThedominantstrategyforalargeOPECproducerlikeSaudiArabiais:A)

tokeepcrudeoilpriceslowtoensurefuturegrowthofthedemandforoil.B)

tokeepcrudeoilpriceshighandcooperatewithothermembersofOPEC.C)

producingasmuchcrudeoilaspossibletopromoteworldeconomicgrowth.D)

producingaslittlecrudeoilaspossibletokeepoilreservesintheground.37)

ThedominantstrategyforasmallOPECproducerlikeNigeriais:A)

producingasmuchcrudeoilaspossibletomaximizeitsownearnings.B)

producingaslittlecrudeoilaspossibletocooperatewithothermembersofOPEC.C)

producingitsOPECdeterminedquotaofcrudeoil.D)

keepingcrudeoilpricesaslowaspossibletopromoteworlde