经济学原理对应练习 17.docVIP

Chapter 17 Monopolistic Competition Multiple Choice 1. Which of the following is not a characteristic of monopolistic competition? a. A large number of sellers. b. Firms are price takers. c. There is free entry into the market. d. Sellers offer products that are, in some way, different from their competitors products. ANS: B PTS: 1 DIF: 1 REF: 17-0 TOP: Monopolistic competition MSC: Definitional 2. Which of the following markets would most likely be represented by monopolistic competition? a. The market for corn. b. The market for cable television service. c. The market for #2 wooden pencils. d. The market for clothing. ANS: D PTS: 1 DIF: 2 REF: 17-0 TOP: Monopolistic competition MSC: Interpretive 3. Monopolistic competition is characterized by which of the following attributes? (i) Free entry (ii) Product differentiation (iii) Many sellers 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: Monopolistic competition MSC: Definitional 4. In a monopolistically competitive industry, firms set price a. equal to marginal cost since each firm is a price taker. b. below marginal cost since each firm is a price taker. c. above marginal cost since each firm is a price setter. d. always a fraction of marginal cost since each firm is a price setter. ANS: C PTS: 1 DIF: 2 REF: 17-1 TOP: Price MSC: Interpretive 5. In which of the following market structures are there a large number of sellers? (i) Monopolistic competition (ii) Perfect competition (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. In which of the following market structures does free entry and exit play an important role in the long-run equilibrium outcome? (i) Perfect competition (ii) Monopolistic competition (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 RE