econ - problem set 10ProblemSet

econ - problem set 10ProblemSet - Review Assessment:...

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Unformatted text preview: Review Assessment: Problem Set 10 Name: Problem Set 10 Status: Completed Score: 0 out of 100 point(s) Instructions: Question 1 Multiple Choice 0 of 5 point(s) A special kind of imperfectly competitive market that has only two firms is called Your Answer: [None Given] Correct Answer: a duopoly. Feedback: a duopoly. Question 2 Multiple Choice 0 of 5 point(s) In a market that is characterized by imperfect competition, Your Answer: [None Given] Correct Answer: there are at least a few firms that compete with one another. Feedback: there are at least a few firms that compete with one another. Question 3 Multiple Choice 0 of 5 point(s) Use the following information to answer the following questions. Each year the United States considers renewal of Most Favored Nation (MFN) trading status with China. Historically, legislators have made threats of not renewing MFN status because of human rights abuses in China. The non renewal of MFN trading status is likely to involve some retaliatory measures by China. The Game below reflects the potential economic gains associated with a two-outcome game in which China may impose trade sanctions against U.S. firms and the United States may not renew MFN status with China. The following table contains the dollar value of all trade flow benefits to the United States and China under two trade-relationship scenarios. Table 16-4 China Impose trade sanctions against U.S. firms Do not impose trade sanctions against U.S. firms United States Don't renew MFN status with China U.S. trade value = $65 b China trade value = $75 b U.S. trade value = $140 b China trade value = $5 b Renew MFN status with China U.S. trade value = $35 b China trade value = $285 b U.S. trade value = $130 b China trade value = $275 b Refer to Table 16-4. Pursuing its own best interests, China will impose trade sanctions against U.S. firms Your Answer: [None Given] Correct Answer: regardless of whether the U.S. renews MFN status with China. Feedback: regardless of whether the U.S. renews MFN status with China. Question 4 Multiple Choice 0 of 5 point(s) The logic of self-interest causes a duopoly's (i)total level of output to exceed the monopoly level. (ii)total level of output to exceed the competitive level. (iii)price to fall short of the monopoly price. Your Answer: [None Given] Correct Answer: (i) and (iii) Feedback: (i) and (iii) Question 5 Multiple Choice 0 of 5 point(s) In order to be successful, a cartel must Your Answer: [None Given] Correct Answer: agree on the total level of production and on the amount produced by each member. Feedback: agree on the total level of production and on the amount produced by each member. Question 6 Multiple Choice 0 of 5 point(s) Use the following information to answer the following questions....
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This note was uploaded on 06/13/2011 for the course ECON 2252 taught by Professor Byrd during the Spring '11 term at Troy.

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econ - problem set 10ProblemSet - Review Assessment:...

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