R12 练习: 企业与市场结构

考纲范围

  • determine and interpret breakeven and shutdown points of production under perfect and imperfect competition.
  • determine and interpret how economies and diseconomies of scale affect costs under perfect and imperfect competition.
  • describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly.
  • explain supply and demand relationships under monopolistic competition, including the optimal price and output for firms as well as pricing strategy.
  • explain supply and demand relationships under oligopoly, including the optimal price and output for firms as well as pricing strategy.
  • identify the type of market structure within which a firm operates and describe the use and limitations of concentration measures.

Q1.

In the long run, which of the following statements is most accurate for a survived firm in a perfectly competitive market?

Statement 1: The firm will produce goods at the lowest average cost.

Statement 2: The firm may earn zero economic profit.

A. Statement 1

B. Statement 2

C. Both of statement 1 and statement 2


Q2.

In a monopolistic market, which of the following conditions must hold for a firm to maximize profit?

A. Price equals marginal cost.

B. Marginal revenue equals marginal cost.

C. Average revenue equals marginal cost.


Q3.

In the short run, which of the following statements is most accurate for a firm in a perfect competition market?

A. The firm will stay in the market if the marginal revenue is higher than the average variable cost.

B. The firm will stay in the market if the marginal revenue is lower than the average variable cost.

C. The firm will leave the market if the marginal revenue is lower than the average total cost.


Q4.

Jeff Liu is a hard-working farmer who had 10 acres of land to grow corn and sold harvest in a perfectly competitive market. After introducing an advanced machine, the farmer could dramatically increase farming productivity. To utilize the new machine, the farmer rented two more acres of land to grown corn. If the farmer keeps the output per acres constant and sold out all the corn, the total revenue in this year would mostly rise by:

A. more than 20%.

B. 20%.

C. less than 20%.


Q5.

A firm does its business in a perfectly competitive market. If the firm can stay in the market in the short run but is expected to exit the market in the long run, which of the following situations is the firm most likely facing now?

A. Average revenue is less than average total cost but more than average variable cost.

B. Marginal revenue is more than average total cost.

C. Price is less than average variable cost.


Q6.

Which of the following statements about economies of scale is least accurate?

A. Diminishing waste and decreasing costs lead to economies of scale.

B. The division of labor leads to economies of scale.

C. Economies of scale refers to the phenomenon that economic profits decrease through expanding production scale.


Q7.

The latest quarterly performance express of a listed company briefly disclosed the production situation. The production input cost of the new generation series product X increased by 2.3% and the output increased by 4.7%; The production input cost of classic series product Y increased by 5.1% and the output increased by 4.8%. According to the above information, which of the following statements is most likely to be correct?

A. Product X has increasing returns to scale and product Y has decreasing returns to scale.

B. Product X has decreasing returns to scale and product Y has increasing returns to scale.

C. Product X has increasing returns to scale and product Y has increasing returns to scale.


Q8.

In a perfectly competitive market, which is the least likely? There are:

A. many sellers.

B. high barrier to entry.

C. identical products.


Q9.

Which of the following statements about monopolistic market is least accurate?

A. Economic profit can exist in the long run due to high entry barriers.

B. The product offered by the seller has no close substitute.

C. A monopolist will charge a price as high as possible.


Q10.

Since Alice’s home-brewed wine was popular with her friends, she decided to open her winery to produce and sell the home-brewed wine. After purchasing equipment with little capital, Alice opened the winery. To increase brand visibility, she put an advertisement in local newspapers. Due to the distinct taste of the wine and the successful advertisement, the demand had far outstripped the supply even though Alice increased the price of the wine several times. Alice most likely faced:

A. Perfect competition.

B. Monopolistic competition.

C. Monopoly.


Q11.

China Mobile, China Unicom, and China Telecom are the only three main carrier operators in China. All of them provide standardized mobile communication products and homogeneous services. The three carrier operators are most likely to compete in which market?

A. Perfect competition.

B. Oligopoly.

C. Monopoly.


Q12.

Compared to a perfectly competitive market, what is the unique characteristic of monopolistic competition market?

A. The manufacturer has some pricing power.

B. The manufacturers earn economic profit in the long run.

C. There are a large number of buyers and sellers.


Q13.

Colgate runs its business in a market with a lot of competitors. To compete with others, Colgate builds two product lines of toothpaste. The materials and process to produce the toothpaste are the same. To distinguish the two product lines, Colgate uses various keywords in the advertisement. For one product line, Colgate highlights the effect of whitening teeth. For another product line, Colgate underlines the desensitization. The market structure is most likely to be:

A. perfect competition.

B. oligopoly.

C. monopolistic competition.


Q14.

Which of the following statements about the kinked demand curve model is least accurate?

A. An increase in a firm’s product price will not be followed by its competitors.

B. A decrease in a firm’s product price will be followed by its competitors.

C. The elasticity of demand is greater when price decreases than price increases.


Q15.

FZ Cookie is a firm that takes the price set by the dominant company in an oligopolistic market. In an attempt to increase its market share in the industry, the firm instigates a price war by decreasing its price. Which of the following statements is most likely to be the result of the price war?

A. The market share of FZ Cookie will increase.

B. The market share of the dominant company will decrease.

C. The market share of FZ Cookie will decrease.


Q16.

There are two oligopoly firms X and Y in the mobile payment industry of a country. Due to the recent government antitrust regulation, the two firms are facing the following countermeasures and corresponding benefits:

(1) If firm X opens the platform, the annual profit is expected to be $5 billion; If firm Y opens the platform, the annual profit is expected to be $6 billion.

(2) If firm X opens the platform, the annual profit is expected to be $5.8 billion; If firm Y is connected to the supervision system, the annual profit is expected to be $7 billion.

(3) If firm X is connected to the supervision system, the annual profit is expected to be $6.3 billion; If firm Y opens the platform, the annual profit is expected to be $5.8 billion.

(4) If firm X is connected to the supervision system, the annual profit is expected to be $4 billion; If firm Y is connected to the supervision system, the annual profit is expected to be $6.5 billion.

According to the above information, it is inferred that what is the most likely benefit of the Nash equilibrium strategy of firms X and Y?

A. The annual profits of firms X and Y are expected to be $5 billion and $6 billion respectively.

B. The annual profits of firms X and Y are expected to be $5.8 billion and $7 billion respectively.

C. The annual profits of firms X and Y are expected to be $6.3 billion and $5.8 billion respectively.


Q17.

An analyst gathered the following market share data for an industry comprised of five companies:

CompanyMarket Share (%)
Zeta35
Yusef25
Xenon20
Waters10
Vlastos10

The industry’s three-firm Herfindahl-Hirschman index is closest to:

A. 0.185

B. 0.225

C. 0.235


Q18.

Suppose we have the following statistics:

Industry X: the six-firm Herfindahl-Hirschmann Index is 80%. The market share of companies in the industry changes frequently, and the phenomenon of “new in and old out” often occurs.

Industry Y: the six-firm Herfindahl-Hirschmann Index is 78%. The companies in the industry were established earlier and the market share is relatively stable.

Which of the following statements is most likely to be correct?

A. Industry X is a perfectly competitive industry.

B. Industry Y is a monopoly industry.

C. Industry Y may have a higher degree of monopoly than X.