曼昆经济学原理微观第五版测试题库17

1、Chapter 17OligopolyTRUE/FALSE1.The essence of an oligopolistic market is that there are only a few sellers.ANS:TDIF:1REF:17-0NAT:AnalyticLOC:OligopolyTOP:OligopolyMSC:Definitional2.Game theory is just as necessary for understanding competitive or monopoly markets as it is for understanding oligopoli

2、stic markets.ANS:FDIF:2REF:17-0NAT:AnalyticLOC:OligopolyTOP:Oligopoly | Game theoryMSC:Interpretive3.In a competitive market, strategic interactions among the firms are not important.ANS:TDIF:1REF:17-0NAT:AnalyticLOC:OligopolyTOP:Game theory | Competitive marketsMSC:Interpretive4.For a firm, strateg

3、ic interactions with other firms in the market become more important as the number of firms in the market becomes larger.ANS:FDIF:2REF:17-0NAT:AnalyticLOC:OligopolyTOP:Oligopoly | Game theoryMSC:Interpretive5.Suppose three firms form a cartel and agree to charge a specific price for their output. Ea

4、ch individual firm has an incentive to maintain the agreement because the firms individual profits will be the greatest under the cartel arrangement.ANS:FDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:CollusionMSC:Interpretive6.If firms in an oligopoly agree to produce according to the monopoly outcome,

5、they will produce the same level of output as they would produce in a Nash equilibrium.ANS:FDIF:1REF:17-1NAT:AnalyticLOC:OligopolyTOP:Oligopoly | CooperationMSC:Interpretive7.Whether an oligopoly consists of 3 firms or 10 firms, the level of output likely will be the same.ANS:FDIF:2REF:17-1NAT:Analy

6、ticLOC:OligopolyTOP:OligopolyMSC:Interpretive8.Cartels with a small number of firms have a greater probability of reaching the monopoly outcome than do cartels with a larger number of firms.ANS:TDIF:1REF:17-1NAT:AnalyticLOC:OligopolyTOP:CartelsMSC:Interpretive9.As the number of firms in an oligopoly

7、 becomes very large, the price effect disappears.ANS:TDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:OligopolyMSC:Interpretive10.If all of the firms in an oligopoly successfully collude and form a cartel, then total profit for the cartel is equal to what it would be if the market were a monopoly.ANS:TDIF

8、:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:CartelsMSC:Interpretive11.As the number of firms in an oligopoly increases, the magnitude of the price effect increases.ANS:FDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:OligopolyMSC:Interpretive12.All examples of the prisoners dilemma game are characterized by on

9、e and only one Nash equilibrium.ANS:FDIF:3REF:17-2NAT:AnalyticLOC:OligopolyTOP:Nash equilibrium | Prisoners' dilemmaMSC:Interpretive13.If two players engaged in a prisoners dilemma game are likely to repeat the game, they are more likely to cooperate than if they play the game only once.ANS:TDIF

10、:2REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Interpretive14.The story of the prisoners' dilemma contains a general lesson that applies to any group trying to maintain cooperation among its members.ANS:TDIF:1REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Interp

11、retive15.In the prisoners' dilemma game, one prisoner is always better off confessing, no matter what the other prisoner does.ANS:TDIF:1REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Interpretive16.In the prisoners' dilemma game, confessing is a dominant strategy for each of

12、the two prisoners.ANS:TDIF:2REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemma | Dominant strategyMSC:Interpretive17.The game that oligopolists play in trying to reach the oligopoly outcome is similar to the game that the two prisoners play in the prisoners' dilemma.ANS:TDIF:1REF:17-2NA

13、T:AnalyticLOC:OligopolyTOP:Game theoryMSC:Interpretive18.In the case of oligopolistic markets, self-interest makes cooperation difficult and it often leads to an undesirable outcome for the firms that are involved.ANS:TDIF:1REF:17-2NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:Interpretive19.When pris

14、oners' dilemma games are repeated over and over, sometimes the threat of penalty causes both parties to cooperate.ANS:TDIF:2REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Interpretive20.A tit-for-tat strategy, in a repeated game, is one in which a player starts by cooperating and

15、 then does whatever the other player did last time.ANS:TDIF:2REF:17-2NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:Definitional21.One way that public policy encourages cooperation among oligopolists is through antitrust law.ANS:FDIF:1REF:17-3NAT:AnalyticLOC:OligopolyTOP:AntitrustMSC:Interpretive22.The

16、 Sherman Antitrust Act prohibits competing firms from even talking about fixing prices.ANS:TDIF:1REF:17-3NAT:AnalyticLOC:OligopolyTOP:Sherman Antitrust Act of 1890MSC:Interpretive23.Resale price maintenance prevents retailers from competing on price.ANS:TDIF:1REF:17-3NAT:AnalyticLOC:OligopolyTOP:Res

17、ale price maintenanceMSC:Interpretive24.Some business practices that appear to reduce competition, such as resale price maintenance, may have legitimate economic purposes.ANS:TDIF:2REF:17-3NAT:AnalyticLOC:OligopolyTOP:Resale price maintenanceMSC:Interpretive25.In 2007 the U.S. Supreme Court ruled th

18、at it was not necessary illegal for manufacturers and distributors to agree on minimum retail prices.ANS:TDIF:2REF:17-3NAT:AnalyticLOC:OligopolyTOP:Resale price maintenanceMSC:Definitional26.Tying can be thought of as a form of price discrimination.ANS:TDIF:1REF:17-3NAT:AnalyticLOC:OligopolyTOP:Tyin

19、gMSC:Interpretive27.Policymakers should be aggressive in using their powers to place limits on firm behavior, because business practices that appear to reduce competition never have any legitimate purposes.ANS:FDIF:2REF:17-4NAT:AnalyticLOC:The role of governmentTOP:AntitrustMSC:InterpretiveSHORT ANS

20、WER1.Even when allowed to collude, firms in an oligopoly may choose to cheat on their agreements with the rest of the cartel. Why?ANS:Individual profits can be increased at the expense of group profits if individuals cheat on the cartel's cooperative agreement.DIF:2REF:17-1NAT:AnalyticLOC:Oligop

21、olyTOP:CartelsMSC:Interpretive2.What effect does the number of firms in an oligopoly have on the characteristics of the market?ANS:As the number of firms increases, the equilibrium quantity of goods provided increases and price falls; the market begins to resemble a competitive one.DIF:2REF:17-1NAT:

22、AnalyticLOC:OligopolyTOP:OligopolyMSC:Analytical3.Assume that demand for a product that is produced at zero marginal cost is reflected in the table below.QuantityPrice 0$36 200$33 400$30 600$27 800$241000$211200$181400$151600$121800$ 92000$ 62200$ 32400$ 0a.What is the profit-maximizing level of pro

23、duction for a group of oligopolistic firms that operate as a cartel?b.Assume that this market is characterized by a duopoly in which collusive agreements are illegal. What market price and quantity will be associated with a Nash equilibrium?ANS:a.Q = 1200b.Q = 1600, P = 12DIF:3REF:17-1NAT:AnalyticLO

24、C:OligopolyTOP:CartelsMSC:Applicative4.Describe the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.ANS:The source of the tension exists becau

25、se total profits are maximized when oligopolists cooperate on price and quantity by operating as a monopolist. However, individual profits can be gained by individuals cheating on their cooperative agreement. This is why cooperative agreements among members of a cartel are inherently unstable. This

26、is evident in the problem OPEC experiences in enforcing the cooperative agreement on production and price of crude oil.DIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:CartelsMSC:Interpretive5.Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopol

27、y market. How does this differ from output and price effects in a monopoly market?ANS:Output effect: Price > Marginal cost => increased output will add to profitPrice effect: increased quantity is sold at a lower price => lower revenue (profit?)An oligopolist must take into account how the

28、output and price effects will be influenced by competitors' production decisions, or it must assume competitors' production will not change in response to its own actions.DIF:3REF:17-1NAT:AnalyticLOC:OligopolyTOP:Profit maximization | OligopolyMSC:Interpretive6.Explain how the output effect

29、and the price effect influence the production decision of the individual oligopolist.ANS:Since the individual oligopolist faces a downward-sloping demand curve, she realizes that if she increases output, all output must be sold at a lower market price. As such, the revenue from selling the additiona

30、l units at the lower market price must exceed the loss in revenue from selling all previous units at the new lower price. Otherwise, profits will fall as output (production) is increased.DIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:Profit maximization | OligopolyMSC:Interpretive7.Ford and General Motor

31、s are considering expanding into the Vietnamese automobile market. Devise a simple prisoners' dilemma game to demonstrate the strategic considerations that are relevant to this decision.ANS:The answer should present two strategies for each company, such as “Expand” and “Dont Expand.” To be a pri

32、soners dilemma, each firm needs a dominant strategy, but each firm choosing its dominant strategy results in an outcome that is jointly worse than if they both chose their other strategy. A possible payoff table with payoffs (Ford, GM) isGMExpandDont ExpandFordExpand(2, 2)(4, 1)Dont Expand(1, 4)(3,

33、3)DIF:3REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Applicative8.Nike and Reebok (athletic shoe companies) are considering whether or not to advertise during the Super Bowl. Devise a simple prisoners' dilemma game to demonstrate the strategic considerations that are relevant to

34、 this decision. Does the repeated game scenario differ from a single period game? Is it possible that a repeated game (without collusive agreements) could lead to an outcome that is better than a single-period game? Explain the circumstances in which this may be true.ANS:The answer should show that

35、if both shoe companies decide to advertise they will both be worse off than if they did not. It should also show that each company has the individual incentive to advertise. The dominant strategy of both companies will be to advertise, regardless of what the other is doing. If the game is repeated m

36、ore than once it is possible that the shoe companies will decide not to advertise in the hopes that the other company adequately understands the mutually beneficial gains that come from not advertising.DIF:3REF:17-2NAT:AnalyticLOC:OligopolyTOP:Prisoners' dilemmaMSC:Applicative9.Outline the purpo

37、se of antitrust laws. What do they accomplish?ANS:The purpose of antitrust laws is to move markets toward a competitive equilibrium outcome. These laws are used to prevent behavior that would lead to excessive market power by any single firm.DIF:2REF:17-3NAT:AnalyticLOC:OligopolyTOP:AntitrustMSC:Int

38、erpretive10.Explain the practice of resale price maintenance and discuss why it is controversial.ANS:Resale price maintenance is a requirement by producers that retailers sell their product for a price specified by the manufacturer. It is controversial because on the surface it appears to limit the

39、ability of retailers to compete on the basis of price. However, if the manufacturer does not exercise resale price maintenance a free-rider problem may become evident among the retailers and ultimately lead to lower profits for the manufacturer.DIF:2REF:17-3NAT:AnalyticLOC:The role of governmentTOP:

40、Resale price maintenanceMSC:Interpretive11.Explain the practice of tying and discuss why it is controversial.ANS:Tying is the practice of bundling goods for sale. It is controversial because it is perceived as a tool for expanding the market power of firms by forcing consumers to purchase additional

41、 products. However, economists are skeptical that a buyer's willingness to pay increases just because two products are bundled together. In other words, simply bundling two products together doesn't necessarily add any value. It is more accurately believed to be a form of price discriminatio

42、n.DIF:2REF:17-3NAT:AnalyticLOC:OligopolyTOP:TyingMSC:InterpretiveSec00 - OligopolyMULTIPLE CHOICE1.In the language of game theory, a situation in which each person must consider how others might respond to his or her own actions is called a a.quantifiable erative situation.c.strategi

43、c situation.d.tactical situation.ANS:CDIF:1REF:17-0NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:Definitional2.In general, game theory is the study of a.how people behave in strategic situations.b.how people behave when the possible actions of other people are irrelevant.c.oligopolistic markets.d.all

44、types of markets, including competitive markets, monopolistic markets, and oligopolistic markets.ANS:ADIF:2REF:17-0NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:Definitional3.Which of the following statements is correct?a.Strategic situations are more likely to arise when the number of decision-makers

45、 is very large rather than very small.b.Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets.c.Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-

46、toe.d.Game theory is not necessary for understanding competitive or monopoly markets.ANS:DDIF:2REF:17-0NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:Interpretive4.In which of the following markets are strategic interactions among firms most likely to occur?a.markets to which patent and copyright laws

47、applyb.the market for piano lessonsc.the market for tennis ballsd.the market for cornANS:CDIF:2REF:17-0NAT:AnalyticLOC:OligopolyTOP:Game theoryMSC:InterpretiveSec01 - Oligopoly - Markets with Only a Few SellersMULTIPLE CHOICE1.A distinguishing feature of an oligopolistic industry is the tension betw

48、een fit maximization and cost eration and self ducing a small amount of output and charging a price above marginal cost.d.short-run decisions and long-run decisions.ANS:BDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:OligopolyMSC:Interpretive2.In studying oligopolist

49、ic markets, economists assume that a.there is no conflict or tension between cooperation and self-interest.b.it is easy for a group of firms to cooperate and thereby establish and maintain a monopoly outcome.c.each oligopolist cares only about its own profit.d.strategic decisions do not play a role

50、in such markets.ANS:CDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:Oligopoly | CooperationMSC:Interpretive3.The simplest type of oligopoly isa.monopoly.b.duopoly.c.monopolistic competition.d.oligopolistic competition.ANS:BDIF:1REF:17-1NAT:AnalyticLOC:OligopolyTOP:DuopolyMSC:Interpretive4.A special kind

51、of imperfectly competitive market that has only two firms is calleda.a two-tier competitive structure.b.an incidental monopoly.c.a doublet.d.a duopoly.ANS:DDIF:1REF:17-1NAT:AnalyticLOC:OligopolyTOP:DuopolyMSC:Definitional5.An agreement between two duopolists to function as a monopolist usually break

52、s down because a.they cannot agree on the price that a monopolist would charge.b.they cannot agree on the output that a monopolist would produce.c.each duopolist wants a larger share of the market in order to capture more profit.d.each duopolist wants to charge a higher price than the monopoly price

53、.ANS:CDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:DuopolyMSC:Interpretive6.Which of the following statements is correct?a.If duopolists successfully collude, then their combined output will be equal to the output that would be observed if the market were a monopoly.b.Although the logic of self-interes

54、t decreases a duopolys price below the monopoly price, it does not push the duopolists to reach the competitive price.c.Although the logic of self-interest increases a duopolys level of output above the monopoly level, it does not push the duopolists to reach the competitive level.d.All of the above

55、 are correct.ANS:DDIF:2REF:17-1NAT:AnalyticLOC:OligopolyTOP:DuopolyMSC:Interpretive7.Suppose that Sonny and Cher are duopolists in the music industry. In January, they agree to work together as a monopolist, charging the monopoly price for their music and producing the monopoly quantity of songs. By

56、 February, each singer is considering breaking the agreement. What would you expect to happen next?a.Sonny and Cher will determine that it is in each singers best self interest to maintain the agreement.b.Sonny and Cher will each break the agreement. The new equilibrium quantity of songs will increase, and the new equilibrium price w