Question 1

If there are a large number of firms in a monopolistically competitive industry

Accepted Answer

A)  long-run profit will be equal to zero. 
B)  the country in which the firms are located can be expected to export the goods they produce. 
C)  there will be barriers to entry that prevent addition firms from entering the industry. 
D)  the firms will converge production on a standardized product. 
E)  there will be a small number of firms that are very large and the rest will be very small. 
A)  long-run profit will be equal to zero. 
B)  the country in which the firms are located can be expected to export the goods they produce. 
C)  there will be barriers to entry that prevent addition firms from entering the industry. 
D)  the firms will converge production on a standardized product. 
E)  there will be a small number of firms that are very large and the rest will be very small.

Question 2

Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ________,with the first referred to as ________ and the second as ________.

Accepted Answer

A)  foreign direct investment (FDI) outflows; greenfield; brownfield 
B)  foreign direct investment (FDI) inflows; greenfield; brownfield 
C)  foreign direct investment (FDI) outflows; brownfield; greenfield 
D)  foreign direct investment (FDI) inflows; brownfield; greenfield 
E)  foreign direct investment (FDI); inflows; outflows 
A)  foreign direct investment (FDI) outflows; greenfield; brownfield 
B)  foreign direct investment (FDI) inflows; greenfield; brownfield 
C)  foreign direct investment (FDI) outflows; brownfield; greenfield 
D)  foreign direct investment (FDI) inflows; brownfield; greenfield 
E)  foreign direct investment (FDI); inflows; outflows

Question 3

In the model of monopolistic competition,compared to a firm with a lower marginal cost,a firm with a higher marginal cost will set a ________ price,produce ________ output,and earn ________ profits.

Accepted Answer

A)  higher; less; less 
B)  lower; more; more 
C)  higher; more; more 
D)  lower; less; less 
E)  higher; less; more 
A)  higher; less; less 
B)  lower; more; more 
C)  higher; more; more 
D)  lower; less; less 
E)  higher; less; more

Question 4

A corporation is considered a multinational ________ if ________.

Accepted Answer

A)  affiliate; more than 10% of its stock is held by a foreign company 
B)  parent; more than 10% of its stock is held by a foreign company 
C)  child; more than 10% of its stock is held by a foreign company 
D)  child; more than 50% of its stock is held by a foreign company 
E)  monopolist; it owns more than 50% of a foreign firm 
A)  affiliate; more than 10% of its stock is held by a foreign company 
B)  parent; more than 10% of its stock is held by a foreign company 
C)  child; more than 10% of its stock is held by a foreign company 
D)  child; more than 50% of its stock is held by a foreign company 
E)  monopolist; it owns more than 50% of a foreign firm

Question 5

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average total cost equal to when Q = 10?

Accepted Answer

C/Q = [100

Question 6

Firms that produce ________ products must be ________ competitive.

Accepted Answer

A)  differentiated; imperfectly 
B)  differentiated; perfectly 
C)  standardized; imperfectly 
D)  standardized; perfectly 
E)  exported; imperfectly 
A)  differentiated; imperfectly 
B)  differentiated; perfectly 
C)  standardized; imperfectly 
D)  standardized; perfectly 
E)  exported; imperfectly

Question 7

An imperfectly competitive firm has the following demand curve: Q = 100 - 2P.What is marginal revenue equal to when P = 30?

Accepted Answer

Q = 40,so

Question 8

Imagine scale economies were not only external to firms,but were also external to individual countries.That is,the larger the worldwide industry (regardless of where firms or plants are located),the cheaper would be the per-unit cost of production.Describe what world trade would look like in this case.

Accepted Answer

Presumably each country would

Question 9

Modeling trade in imperfectly competitive industries is problematic because

Accepted Answer

A)  there is no single generally accepted model of behavior by imperfectly competitive firms. 
B)  there are no models of imperfectly competitive behavior. 
C)  it is difficult to find an imperfectly competitive firm in the real world. 
D)  collusion among imperfectly competitive firms makes usable data rare. 
E)  there is only a single model of imperfect competition (monopoly) but imperfect competition can take many forms in the real world. 
A)  there is no single generally accepted model of behavior by imperfectly competitive firms. 
B)  there are no models of imperfectly competitive behavior. 
C)  it is difficult to find an imperfectly competitive firm in the real world. 
D)  collusion among imperfectly competitive firms makes usable data rare. 
E)  there is only a single model of imperfect competition (monopoly) but imperfect competition can take many forms in the real world.

If there are a large number of firms in a monopolistically competitive industry

Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ,with the first referred to as and the second as .

In the model of monopolistic competition,compared to a firm with a lower marginal cost,a firm with a higher marginal cost will set a price,produce output,and earn profits.

A corporation is considered a multinational if .

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average total cost equal to when Q = 10?

Firms that produce products must be competitive.

An imperfectly competitive firm has the following demand curve: Q = 100 - 2P.What is marginal revenue equal to when P = 30?

Modeling trade in imperfectly competitive industries is problematic because

Introduction

National Income Accounting and the Balance of Payments

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters

Exam 8: Firms in the Global Economy: Export Decisions,Outsourcing,and Multinational Enterprises

If there are a large number of firms in a monopolistically competitive industry

Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ________,with the first referred to as ________ and the second as ________.

In the model of monopolistic competition,compared to a firm with a lower marginal cost,a firm with a higher marginal cost will set a ________ price,produce ________ output,and earn ________ profits.

A corporation is considered a multinational ________ if ________.

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is average total cost equal to when Q = 10?

Firms that produce ________ products must be ________ competitive.

An imperfectly competitive firm has the following demand curve: Q = 100 - 2P.What is marginal revenue equal to when P = 30?

Modeling trade in imperfectly competitive industries is problematic because

Introduction

National Income Accounting and the Balance of Payments

Labor Productivity and Comparative Advantage: The Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: The Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

The Instruments of Trade Policy

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

Filters

Consider the following two cases.In the first,a U.S.firm purchases 18% of a foreign firm.In the second,a U.S.firm builds a new production facility in a foreign country.Both are ,with the first referred to as and the second as .

In the model of monopolistic competition,compared to a firm with a lower marginal cost,a firm with a higher marginal cost will set a price,produce output,and earn profits.

A corporation is considered a multinational if .

Firms that produce products must be competitive.