答案和详解如下： 16.Assume that the market for paper supplies and the market for toothpicks have the following characteristics: The Market for Paper Supplies is comprised of: § A large number of independent sellers
§ Differentiated products
§ Low barriers to entry/exit
The Market for Toothpicks is comprised of: § A large number of independent sellers § Homogeneous products § No barriers to entry/exit The Papyrus Company operates in the market for paper supplies and Wudden Floss operates in the toothpick market. The sales managers for both companies want to know how a change in price will affect the quantity sold. Which of the following choices best completes the following sentence? If both firms increase prices, the quantity sold by Papyrus Company will: A) increase, and the quantity sold by Wudden Floss will decrease. B) decrease, and so will the quantity sold by Wudden Floss. C) decrease, and Wudden Floss will sell nothing. D) decrease, and the quantity sold by Wudden Floss will remain the same. The correct answer was C) Papyrus Company is an example of a price searcher engaged in monopolistic competition (low barriers to entry). Thus, the company faces a downward sloping demand curve and highly elastic demand. An increase in price will result in fewer units sold. Wudden Floss is an example of a price taker operating in a purely competitive market. Thus, the firm faces a horizontal demand curve and perfectly elastic demand. An increase in price will result in no units sold. In a purely competitive market, the firm must take the market price. 17.Which of the following is NOT a characteristic of an oligopoly? A) There are few sellers. B) High barriers to entry. C) Products can either be similar or differentiated. D) Relatively small economies of scale. The correct answer was D) Oligopolies have large economies of scale and interdependence among competitors. 18.An oligopolistic industry does NOT have: A) large economies of scale. B) high barriers to entry. C) many sellers. D) a great deal of interdependence among firms. The correct answer was C) An oligopolistic industry has a few sellers with large economies of scale, a great deal of interdependence among firms, and high barriers to entry. 19.An oligopolistic firm: A) will consider the potential response of its rivals when making business decisions. B) is likely to be formed when the minimum-cost output is only a small portion of the market output. C) is likely to be formed when barriers to entry are low. D) will seldom use product quality as a competitive weapon. The correct answer was A) Oligopolists are highly dependent upon the actions of their rivals when making business decisions. Price determination in the auto industry is a good example. Automakers tend to play "follow the leader" and announce price increases in close synchronization. They are not working explicitly together, but the actions of one producer have a large impact on the others when products are differentiated, quality may be a competitive strategy. 20.An oligopoly is charcterized by all of the following EXCEPT: A) large economies of scale. B) significant barriers to entry. C) a large number of sellers. D) interdependence among competitors. The correct answer was C) Oligopolies consist of a small number of sellers. Their products may be either similar or differentiated. | 
发表于 2008-4-18 12:12
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