Q6. Which one of the following structures is characterized by free entry and exit, a differentiated product, and price searcher behavior?

A)   Oligopoly.

B)   Pure competition.

C)   Monopolistic competition.

Q7. Which one of the following is NOT a characteristic of monopolistic competition?

A)   A single seller.

B)   Low barriers to entry and exit.

C)   Differentiated products.

Q8. Characteristics of monopolistic competition include all of the following EXCEPT:

A)     high barriers to entry.

B)     large numbers of independent sellers.

C)     differentiated products.

Q9. 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)   will seldom use product quality as a competitive weapon.

Q10. An oligopolistic industry does NOT have:

A)   high barriers to entry.

B)   many sellers.

C)   large economies of scale.

答案和详解如下：

Q6. Which one of the following structures is characterized by free entry and exit, a differentiated product, and price searcher behavior?

A)   Oligopoly.

B)   Pure competition.

C)   Monopolistic competition.

Correct answer is C)

Monopolistic competition is another name for competitive price-searcher markets. There are a large number of independent sellers, each produces a differentiated product, each market has a low barrier to entry, and each producer faces a downward sloping demand curve.

Q7. Which one of the following is NOT a characteristic of monopolistic competition?

A)   A single seller.

B)   Low barriers to entry and exit.

C)   Differentiated products.

Correct answer is A)

There are many sellers or producers who sell differentiated products that permit firms to attract customers without reducing price; and there are low barriers to entry.

Q8. Characteristics of monopolistic competition include all of the following EXCEPT:

A)     high barriers to entry.

B)     large numbers of independent sellers.

C)     differentiated products.

Correct answer is A)

Monopolistic competition has low barriers to entry.

Q9. 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)   will seldom use product quality as a competitive weapon.

Correct answer is 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.

Q10. An oligopolistic industry does NOT have:

A)   high barriers to entry.

B)   many sellers.

C)   large economies of scale.

Correct answer is B)

An oligopolistic industry has a few sellers with large economies of scale, a great deal of

interdependence among firms, and high barriers to entry.

答CAAAB

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