WorksheetsChapter 8
Total questions: 10
Worksheet time: 3mins
The market demand curve for a monopolist is typically
unit price elastic
downward sloping
horizontal
vertical
A monopoly's marginal cost will
be less than its average fixed cost
be less than the price per unit of its product
exceed its marginal revenue
equal its average total cost
Monopolistic competition is a
simple model of an imperfectly competitive industry that assumes that each firm
hard model of an imperfectly competitive industry that assumes that each firm
simple model of a perfectly competitive industry that assumes that each firm
hard model of an perfectly competitive industry that assumes that each firm
Assumptions of the model of monopolistic competition: Q= S[1/n–b(P–P*)]
where
Q: the number of firm
S: sensitivity of demand to prices
S: total industry output (assumed fixed)
n: quantity produced by each firm
Average costs should depend on the size of the market and the number of firms by the formula:
AC = C/Q = F/Q + c = n F/S + c
AC = C/Q = F/Q + c = n F/S
AC = CxQ = F/Q + c = n F/S + c
AC = CxQ = F/Q + c = n FxS + c
Intra-industry trade refers to
multi-way exchanges of similar goods
two-way exchanges of similar goods
diverse-way exchanges of similar goods
second-way exchanges of similar goods
Dumping is an example of
price discrimination
price interaction
price determination
price range
Greenfield FDI is when
a domestic firm buys a controlling stake in a foreign firm.
has tended to be more stable, while cross-border mergers and acquisitions tend to occur in surges.
a company builds a new production facility abroad.
the affiliate replicates the production process
If a foreign company invests at least _% of the stock in a subsidiary, the two firms are typically classified as a multinational corporation
5%
8%
15%
10%
When foreign sales large Q > F/t, exporting is more expensive and FDI is the___
profit-maximizing choice
revenue-maximizing choice
cost-maximizing choice
profit-stabling choice
