1.Product differentiation is the greatest source of market power for which of the following market structures?

A)   Perfect competition.

B)   Oligopoly.

C)   Monopolistic competition.

D)   Monopoly.

2.Under which type of market structure are the production and pricing alternatives of a firm most affected by the decisions of its competitors?

A)   Monopoly.

B)   Perfect competition.

C)   Oligopoly.

D)   Monopolistic competition.

答案和详解如下：

1.Product differentiation is the greatest source of market power for which of the following market structures?

A)   Perfect competition.

B)   Oligopoly.

C)   Monopolistic competition.

D)   Monopoly.

Click for Answer and Explanation C)

Product differentiation gives market power to firms under monopolistic competition by making the firm the sole producer of a slightly differentiated good.

2.Under which type of market structure are the production and pricing alternatives of a firm most affected by the decisions of its competitors?

A)   Monopoly.

B)   Perfect competition.

C)   Oligopoly.

D)   Monopolistic competition.

Click for Answer and Explanation C)

An oligopoly market structure is characterized by a small number of firms producing similar or differentiated products, with a high degree of interdependence among competitors. Each firm’s optimal price and output are strongly affected by the pricing and output decisions of its competitors.