國際經濟學作業(yè)答案-第六章

1、Chapter 6 Economies of Scale, Imperfect Competition,and International TradenMultiple Choice Questions1.External economies of scale arise when the cost per unit(a)rises as the industry grows larger.(b)falls as the industry grows larger rises as the average firm grows larger.(c)falls as the average fi

2、rm grows larger.(d)remains constant.(e)None of the above.Answer: B2.Internal economies of scale arise when the cost per unit(a)rises as the industry grows larger.(b)falls as the industry grows larger.(c)rises as the average firm grows larger.(d)falls as the average firm grows larger.(e)None of the a

3、bove.Answer: D3.External economies of scale(a)may be associated with a perfectly competitive industry.(b)cannot be associated with a perfectly competitive industry.(c)tends to result in one huge monopoly.(d)tends to result in large profits for each firm.(e)None of the above.Answer: A4.Internal econo

4、mies of scale(a)may be associated with a perfectly competitive industry.(b)cannot be associated with a perfectly competitive industry.(c)are associated only with sophisticated products such as aircraft.(d)cannot form the basis for international trade.(e)None of the above.Answer: B5.A monopolistic fi

5、rm(a)can sell as much as it wants for any price it determines in the market.(b)cannot determine the price, which is determined by consumer demand.(c)will never sell a product whose demand is inelastic at the quantity sold.(d)cannot sell additional quantity unless it raises the price on each unit.(e)

6、None of the above.Answer: C6.Monopolistic competition is associated with(a)cut-throat price competition.(b)product differentiation.(c)explicit consideration at firm level of the feedback effects of other firms pricing decisions.(d)high profit margins.(e)None of the above.Answer: B7.The most common m

7、arket structure is(a)perfect competition.(b)monopolistic competition.(c)small-group oligopoly.(d)perfectly vertical integration.(e)None of the above.Answer: C8.Modeling trade in monopolistic industries is problematic because(a)there is no one generally accepted model of oligopoly behavior.(b)there a

8、re no models of oligopoly behavior.(c)it is difficult to find an oligopoly in the real world.(d)collusion among oligopolists makes usable data rare.(e)None of the above.Answer: A9.Where there are economies of scale, the scale of production possible in a country is constrained by(a)the size of the co

9、untry.(b)the size of the trading partners country.(c)the size of the domestic market.(d)the size of the domestic plus the foreign market.(e)None of the above.Answer: D10.Where there are economies of scale, an increase in the size of the market will(a)increase the number of firms and raise the price

10、per unit.(b)decrease the number of firms and raise the price per unit.(c)increase the number of firms and lower the price per unit.(d)decrease the number of firms and lower the price per unit.(e)None of the above.Answer: C11.The simultaneous export and import of widgets by the United States is an ex

11、ample of(a)increasing returns to scale.(b)imperfect competition.(c)intra-industry trade.(d)inter-industry trade.(e)None of the above.Answer: C12.If output more than doubles when all inputs are doubled, production is said to occur under conditions of(a)increasing returns to scale.(b)imperfect competi

12、tion.(c)intra-industry trade.(d)inter-industry trade.(e)None of the above.Answer: A13.Intra-industry trade can be explained in part by(a)transportation costs within and between countries.(b)problems of data aggregation and categorization.(c)increasing returns to scale.(d)All of the above.(e)None of

13、the above.Answer: D14.If some industries exhibit internal (firm specific) increasing returns to scale in each country, we should not expect to see(a)intra-industry trade between countries.(b)perfect competition in these industries.(c)inter-industry trade between countries.(d)high levels of specializ

14、ation in both countries.(e)None of the above.Answer: B15.Intra-industry trade is most common in the trade patterns of(a)developing countries of Asia and Africa.(b)industrial countries of Western Europe.(c)all countries.(d)North-South trade.(e)None of the above.Answer: B16.International trade based o

15、n scale economies is likely to be associated with(a)Ricardian comparative advantage.(b)comparative advantage associated with Heckscher-Ohlin factor-proportions.(c)comparative advantage based on quality and service.(d)comparative advantage based on diminishing returns.(e)None of the above.Answer: E17

16、.International trade based on external scale economies in both countries is likely to be carried outby a(a)relatively large number of price competing firms.(b)relatively small number of price competing firms.(c)relatively small number of competing oligopolists.(d)monopoly firms in each country/indus

17、try.(e)None of the above.Answer: A18.International trade based solely on internal scale economies in both countries is likely to be carried out by a(a)relatively large number of price competing firms.(b)relatively small number of price competing firms.(c)relatively small number of competing oligopol

18、ists.(d)monopoly firms in each country/industry.(e)None of the above.Answer: D19.A monopoly firm engaged in international trade will(a)equate average to local costs.(b)equate marginal costs with foreign marginal revenues.(c)equate marginal costs with the highest price the market will bear.(d)equate

19、marginal costs with marginal revenues in both domestic and in foreign markets.(e)None of the above.Answer: D20.A monopoly firm will maximize profits by(a)charging the same price in domestic and in foreign markets.(b)producing where the marginal revenue is higher in foreign markets.(c)producing where

20、 the marginal revenue is higher in the domestic market.(d)equating the marginal revenues in domestic and foreign markets.(e)None of the above.Answer: D21.A firm in monopolistic competition(a)earns positive monopoly profits because each sells a differentiated product.(b)earns positive oligopoly profi

21、ts because each firm sells a differentiated product.(c)earns zero economic profits because it is in perfectly or pure competition.(d)earns zero economic profits because of free entry.(e)None of the above.Answer: D22.The larger the number of firms in a monopolistic competition situation,(a)the larger

22、 are that countrys exports.(b)the higher is the price charged.(c)the fewer varieties are sold.(d)the lower is the price charged.(e)None of the above.Answer: D23.The monopolistic competition model is one in which there is/are(a)a monopoly.(b)perfect competition.(c)economies of scale.(d)government int

23、ervention in the market.(e)None of the above.Answer: C24.In industries in which there are scale economies, the variety of goods that a country can produce is constrained by(a)the size of the labor force.(b)anti-trust legislation.(c)the size of the market.(d)the fixed cost.(e)None of the above.Answer

24、: C25.An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one countrys industry, then(a)consumers in both countries would suffer higher prices and fewer varieties.(b)consumers in the imp

25、orting country would suffer higher prices and fewer varieties.(c)consumers in the exporting country would suffer higher prices and fewer varieties.(d)consumers in both countries would enjoy fewer varieties available but lower prices.(e)None of the above.Answer: E26.An industry is characterized by sc

26、ale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice,(a)each countrys marginal cost must equal that of the other country.(b)the marginal cost of this industry must equal marginal revenue in the other.(c)the monopoly m

27、ust lower prices in order to sell more.(d)the two countries must engage in international trade one with the other.(e)None of the above.Answer: D27.A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries

28、engage in trade one with the other, then we would expect(a)the country in which the price of the product is lower will export the product.(b)the country with a relative abundance of the factor of production in which production of the product is intensive will export this product.(c)each of the count

29、ries will export different varieties of the product to the other.(d)neither country will export this product since there is no comparative advantage.(e)None of the above.Answer: C28.The reason why one country may export a product which is produced with positive scale economies is(a)its labor product

30、ivity will tend to be higher.(b)it enjoys a relative abundance of the factor intensely used in the products production.(c)its demand is biased in favor of the product.(d)its demand is biased against the product.(e)None of the above.Answer: E29.Two countries engaged in trade in products with no scale

31、 economies, produced under conditions of perfect competition, are likely to be engaged in(a)monopolistic competition.(b)inter-industry trade.(c)intra-industry trade.(d)Heckscher-Ohlin trade.(e)None of the above.Answer: B30.Two countries engaged in trade in products with scale economies, produced und

32、er conditions of monopolistic competition, are likely to be engaged in(a)price competition.(b)inter-industry trade.(c)intra-industry trade.(d)Heckscher-Ohlinean trade.(e)None of the above.Answer: C31.History and accident determine the details of trade involving(a)Ricardian and Classical comparative

33、advantage.(b)Heckscher-Ohlin model consideration.(c)taste reversals.(d)scale economies.(e)None of the above.Answer: D32.We often observe intra-industry North-South trade in “computers and related devices.” This is due to(a)classification and aggregation ambiguities.(b)monopolistic competition.(c)spe

34、cific factors issues.(d)scale economies.(e)None of the above.Answer: A33.We often observe “pseudo-intra-industry trade” between the United States and Mexico. Actually, such trade is consistent with(a)oligopolistic markets.(b)comparative advantage associated with Heckscher-Ohlin model.(c)optimal tari

35、ff issues.(d)huge sucking sound.(e)None of the above.Answer: B34.Intra-industry trade will tend to dominate trade flows when which of the following exists?(a)Large differences between relative country factor availabilities(b)Small differences between relative country factor availabilities(c)Homogene

36、ous products that cannot be differentiated(d)Constant cost industries(e)None of the above.Answer: B35.The most common form of price discrimination in international trade is(a)non-tariff barriers.(b)Voluntary Export Restraints.(c)dumping.(d)preferential trade arrangements.(e)None of the above.Answer:

37、 CnEssay Questions1.Why is it that if an industry were operating under conditions of domestic internal scale economies (applies to firm in the country)then the resultant equilibrium cannot be consistent with the pure competition model?Answer:Because once one firm became bigger than another, or if on

38、e firm began the industry, then no other firm would be able to match its per unit cost, so that they would be driven out of the industry.2.Is it possible that if positive scale economies characterize an industry, that its equilibrium may be consistent with purely competitive conditions? Explain how

39、this could happen.Answer:Yes. If the scale economies were external to the firm, then there is no reason why the firms may not be in perfect competition.3.If a scale economy is the dominant technological factor defining or establishing comparative advantage, then the underlying facts explaining why a

40、 particular country dominates world markets in some product may be pure chance, or historical accident. Explain, and compare this with the answer you would give for the Heckscher-Ohlin model of comparative advantage.Answer:This statement is true, since the reason the seller is a monopolist may be th

41、at it happened to have been the first to produce this product in this country. It may have no connection to any supply or demand related factors; nor to any natural or man-made availability. This is all exactly the opposite of the Heckscher-Ohlin Neo-Classical models explanation of the determinants

42、of comparative advantage.4.It is possible that trade based on external scale economies may leave a country worse off than it would have been without trade. Explain how this could happen.Answer:One answer is that the terms of trade effects may dominate any other factors.5.If scale economies were not

43、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.Answer:Presumably each co

44、untry would specialize in some component of the final product. This would result in much observed intra-industry trade.6.Why are increasing returns to scale and fixed costs important in models of international trade and monopolistic competition?Answer:There are many answers. Three of these are(a)Inc

45、reasing returns to scale, and high fixed costs may be inconsistent with perfect competition. In such a case, the initial autarkic state may be a suboptimal equilibrium. For example, relative prices may not equal marginal rates of transformation. It follows from this that a change in output compositi

46、ons associated with trade may result in a national welfare for one or both trading countries that is inferior to that associated with the initial autarkic conditions. Hence no “gains from trade.”(b)In a case of increasing scale economies at the firm or plant level, the determination of which product

47、 will be exported by which country is ex-ante indeterminate. Therefore, deriving clear implications concerning the effects of trade on income distributions such as may be derived from the Samuelson-Stolper Theorem is no longer generally possible.(c)Market structures containing positive scale economi

48、es and imperfect competition may allow for “two-way trade,” or intra-industry trade. As in b. above, the various theorems derivable from the Heckscher-Ohlin model concerning directions of trade and income distributions are no longer generally applicable.7.Explain why it may be argued that the relati

49、ve importance of the intra-industry component of world trade is likely to lessen economic strife or confrontation (a la Stolper-Samuelson) associated with commercial policy within countries in which overall trade is expanding?Answer:In the case of the Neo-Classical H-O model, the expansion of trade

50、will tend to increase the incomes of those factors in which the exports are relatively intense. This may create situations in which unskilled labors already relatively low relative incomes would worsen in a country such as the U.S., hence heating up “class warfare.” In the case of intra-industry tra

51、de, the expanding exports will tend to be in relatively fragmented subsets of products (“brands”). Such export expansion will have no determinant or systematic tendency to affect relative factor returns in any deterministic manner.8.Explain why positive economies of scale in one (of two) sectors may

52、 establish a comparative advantage for the large (as compared to the small) country in the production of the commodity which exhibits positive scale economies.Answer:In the case of the H-O model, the actual size of the country is irrelevant in the determination of the direction of trade (though it m

53、ay affect the equilibrium terms of trade). When positive scale economies apply to the production of one product, the country that can devote more resources (in absolute terms) will be able to sell that product cheaper, and therefore will be more likely to gain a “revealed” comparative advantage in t

54、hat product. This will be the country with more factors (both labor and capital)the larger country.nQuantitative/Graphing Problems1.The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist. If it were unable to export, and was constrained by its domesti

55、c market, what quantity would it sell at what price?Answer:It would sell 5 (million tons) at a price of $8/ton.2.Now the monopolist discovers that it can export as much as it likes of its steel at the world price of $5/ton. It will therefore expand for-export production up to the point where its mar

56、ginal cost equals $5. How much steel will the monopolist sell, and at what price?Answer:It would sell 10 million tons at $5/ton.3.Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?Answer:$5/ton.4.While selling exports it would also m

57、aximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel would the firm sell domestically, and at what price?Answer:4 million tons at $10/ton.5.The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this good or b