CHAPTER 16 MONOPOLISTIC COMPETITION 2

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曼昆《经济学原理》17 monopolistic_competition--(汉魅HanMei—经济金融类汇总分享)

• • • • Decreases the number of products offered. Increases demand faced by the remaining firms. Shifts the remaining firms’ demand curves to the right. Increases the remaining firms’ profits.
Copyright © 2004 South-Western
Figure 3 Monopolistic versus Perfect Competition
(a) Monopolistically Competitive Firm Price MC Price
(b) Perfectly Competitive Firm
ATC
MC
ATC
P
P = MC
P = MR (demand curve)
MR
Demand
0
Quantity produced
Efficient scale
Quantity
0
Quantity produced = Efficient scale
Quantity
Copyright©2003 Southwestern/Thomson Learning
• There are two noteworthy differences between monopolistic and perfect competition—excess capacity and markup.
Copyright © 2004 South-Western
Monopolistic versus Perfect Competition

寡头垄断市场分析

Table 1 The Demand Schedule for Water
A Duopoly Example
Price and Quantity Supplied – The price of water in a perfectly competitive
market would be driven to where the marginal cost is zero:
The Prisoners’ Dilemma
The prisoners’ dilemma provides insight into the difficulty in maintaining cooperation. Often people (firms) fail to cooperate with one another even when cooperation would make them better off.
BETWEEN MONOPOLY AND PERFECT COMPETITION
Types of Imperfectly Competitive Markets – Oligopoly
Only a few sellers, each offering a similar or identical product to the others. – Monopolistic Competition Many firms selling products that are similar but not identical.
P = MC = $0 Q = 120 gallons – The price and quantity in a monopoly market would be where total profit is maximized: P = $60 Q = 60 gallons

Economics：Monopolistic Competition

Market Power

Each producer in monopolistic competition is large enough to have some market power.
Market
Power – The ability to alter the market price of a good or service.
Behavior

Monopolistic competition has distinctive behavior.
Product Differentiation

One of the most notable features of monopolistically competitive behavior is product differentiation.
Concentration
ratio – The proportion of total industry output produced by the largest firms (usually the four largest).
Examples

Examples of monopolistic competition include banks, radio stations, health spas, apparel stores, and convenience stores.

Brand Loyalty
By differentiating their products, monopolistic competitors establish brand loyalty. Brand loyalty gives producers greater control over the price of their products.ally competitive firm confronts a downward-sloping demand curve for its output.

Monopolistic Competition and Optimum

American Economic AssociationMonopolistic Competition and Optimum Product DiversityAuthor(s): Avinash K. Dixit and Joseph E. StiglitzSource: The American Economic Review, Vol. 67, No. 3 (Jun., 1977), pp. 297-308Published by: American Economic AssociationStable URL: /stable/1831401Accessed: 27/10/2010 10:38Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at/page/info/about/policies/terms.jsp. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your personal, non-commercial use.Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at/action/showPublisher?publisherCode=aea.Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@.American Economic Association is collaborating with JSTOR to digitize, preserve and extend access to TheAmerican Economic Review.。

17 - Monopolistic Competition

M O N O P O L I S T I C C O M P E T I T I O NIN T H I S CH A PT E RYO U W IL L . . .A na ly z e c o m p e t i t i o n a m o n g f i r m s t h a t s el l d i f f e r e n t i a t e dp r o duc t sC o m p a r e t h eo u t c o m e un de rm o n o p o l i s t i cc o m pe t i t i o n a n du n de r pe r f e c tc o m p e t i t i o nC o n s ide r t h ed e s i r a b il i t y o fo ut c o m e s i nm o n o p o l i s t i c a l l yc o m p e t i t i v em a r k e t sYou walk into a bookstore to buy a book to read during your next vacation. On thestor e’s shelves you find a John Grisham mystery, a Stephen King thriller, a Danielle Steel romance, a Frank McCourt memoir, and many other choices. When you pick out a book and buy it, what kind of market are you participating in?On the one hand, the market for books seems competitive. As you look over the shelves at your bookstore, you find many authors and many publishers vying for your attention. A buyer in this market has thousands of competing products from which to choose. And because anyone can enter the industry by writing and publishing a book, the book business is not very profitable. For every highly paid novelist, there are hundreds of struggling ones.On the other hand, the market for books seems monopolistic. Because each book is unique, publishers have some latitude in choosing what price to charge. The sellers in this market are price makers rather than price takers. And, indeed, the price of books greatly exceeds marginal cost. The price of a typical hardcover E x a m i n e t h e de b a t e o v e r t h e e f fe c t s o fa d v e r t is in gE x a m i n e t h e de b a t eo v e r t h e r o l e o fb r a n d n a m e s377378 PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Ym o no p ol i s ti c c om p e ti t i o na market structure in which manyfirms sell products that are similarbut not identical novel, for instance, is about $25, whereas the cost of printing one additional copy of the novel is less than $5. In this chapter we examine markets that have some features of competi- tion and some features of monopoly. This market structure is called monopolistic competition. Monopolistic competition describes a market with the following attributes:◆ Many sellers: There are many firms competing for the same group ofcustomers.◆ Product differentiation: Each firm produces a product that is at least slightlydifferent from those of other firms. Thus, rather than being a price taker, each firm faces a downward-sloping demand curve.◆ Free entry: Firms can enter (or exit) the market without restriction. Thus,the number of firms in the market adjusts until economic profits are driven to zero.A moment’s thought reveals a long list of markets with these attributes: books, CDs, movies, computer games, restaurants, piano lessons, cookies, furniture, and so on.Monopolistic competition, like oligopoly, is a market structure that lies be- tween the extreme cases of competition and monopoly. But oligopoly and monop- olistic competition are quite different. Oligopoly departs from the perfectly competitive ideal of Chapter 14 because there are only a few sellers in the market. The small number of sellers makes rigorous competition less likely, and it makes strategic interactions among them vitally important. By contrast, under monopo- listic competition, there are many sellers, each of which is small compared to the market. A monopolistically competitive market departs from the perfectly com- petitive ideal because each of the sellers offers a somewhat different product. To understand monopolistically competitive markets, we first consider the de- cisions facing an individual firm. We then examine what happens in the long run as firms enter and exit the industry. Next, we compare the equilibrium un- der monopolistic competition to the equilibrium under perfect competition that we examined in Chapter 14. Finally, we consider whether the outcome in a mo- nopolistically competitive market is desirable from the standpoint of society as a whole. TH E MO N O P O LI S T I C A L LY CO MPE T IT I V E FI RM I N TH E SH O R T RU NEach firm in a monopolistically competitive market is, in many ways, like a mo- nopoly. Because its product is different from those offered by other firms, it faces aCHA PT E R 17 M O N O P O L I S T I C COM PE TI TIO N 379M ONOPOLISTIC C OMPETITORS IN THE S HORT R UN . Monopolistic competitors, likemonopolists, maximize profit by producing the quantity at which marginal revenueequals marginal cost. The firm in panel (a) makes a profit because, at this quantity, price is above average total cost. The firm in panel (b) makes losses because, at this quantity, price is less than average total cost.downward-sloping demand curve. (By contrast, a perfectly competitive firm faces a horizontal demand curve at the market price.) Thus, the monopolistically com- petitive firm follows a monopolist’s rule for profit maximization: It chooses the quantity at which marginal revenue equals marginal cost and then uses its de- mand curve to find the price consistent with that quantity.Figure 17-1 shows the cost, demand, and marginal-revenue curves for two typical firms, each in a different monopolistically competitive industry. In both panels of this figure, the profit-maximizing quantity is found at the intersection of the marginal-revenue and marginal-cost curves. The two panels in this figure show different outcomes for the firm’s profit. In panel (a), price exceeds average total cost, so the firm makes a profit. In panel (b), price is below average total cost. In this case, the firm is unable to make a positive profit, so the best the firm can do is to minimize its losses.All this should seem familiar. A monopolistically competitive firm chooses its quantity and price just as a monopoly does. In the short run, these two types of market structure are similar.TH E LO N G -RU N EQU I LI B RI U MThe situations depicted in Figure 17-1 do not last long. When firms are mak- ing profits, as in panel (a), new firms have an incentive to enter the market. This380 PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Yentry increases the number of products from which customers can choose and,therefore, reduces the demand faced by each firm already in the market. In otherwords, profit encourages entry, and entry shifts the demand curves faced by theincumbent firms to the left. As the demand for incumbent firms’ products falls,these firms experience declining profit.Conversely, when firms are making losses, as in panel (b), firms in the markethave an incentive to exit. As firms exit, customers have fewer products from whichto choose. This decrease in the number of firms expands the demand faced bythose firms that stay in the market. In other words, losses encourage exit, and exitshifts the demand curves of the remaining firms to the right. As the demand forthe remaining firms’ products rises, these firms experience rising profit (that is, de-clining losses).This process of entry and exit continues until the firms in the market are mak-ing exactly zero economic profit. Figure 17-2 depicts the long-run equilibrium.Once the market reaches this equilibrium, new firms have no incentive to enter,and existing firms have no incentive to exit.Notice that the demand curve in this figure just barely touches the average-total-cost curve. Mathematically, we say the two curves are tangent to each other.These two curves must be tangent once entry and exit have driven profit to zero.Because profit per unit sold is the difference between price (found on the demandcurve) and average total cost, the maximum profit is zero only if these two curvestouch each other without crossing.CHA PT E R 17 M O N O P O L I S T I C COM PE TI TIO N381To sum up, two characteristics describe the long-run equilibrium in a monop-olistically competitive market:◆As in a monopoly market, price exceeds marginal cost. This conclusion arisesbecause profit maximization requires marginal revenue to equal marginalcost and because the downward sloping demand curve makes marginalrevenue less than the price.◆As in a competitive market, price equals average total cost. This conclusionarises because free entry and exit drive economic profit to zero.The second characteristic shows how monopolistic competition differs from mo-nopoly. Because a monopoly is the sole seller of a product without close substi-tutes, it can earn positive economic profit, even in the long run. By contrast,because there is free entry into a monopolistically competitive market, the eco-nomic profit of a firm in this type of market is driven to zero.MO NO POLI STI C VE RSU S P E R F EC T CO M PE TIT IO NFigure 17-3 compares the long-run equilibrium under monopolistic competition tothe long-run equilibrium under perfect competition. (Chapter 14 discussed theequilibrium with perfect competition.) There are two noteworthy differences be-tween monopolistic and perfect competition: excess capacity and the markup.Exces s C ap acit y As we have just seen, entry and exit drive each firm in amonopolistically competitive market to a point of tangency between its demand382 PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Yand average-total-cost curves. Panel (a) of Figure 17-3 shows that the quantity ofoutput at this point is smaller than the quantity that minimizes average total cost.Thus, under monopolistic competition, firms produce on the downward-slopingportion of their average-total-cost curves. In this way, monopolistic competitioncontrasts starkly with perfect competition. As panel (b) of Figure 17-3 shows, freeentry in competitive markets drives firms to produce at the minimum of averagetotal cost.The quantity that minimizes average total cost is called the efficient scale of thefirm. In the long run, perfectly competitive firms produce at the efficient scale,whereas monopolistically competitive firms produce below this level. Firms aresaid to have excess capacity under monopolistic competition. In other words, a mo-nopolistically competitive firm, unlike a perfectly competitive firm, could increasethe quantity it produces and lower the average total cost of production.Markup over Ma r gina l C os t A second difference between perfect com-petition and monopolistic competition is the relationship between price and mar-ginal cost. For a competitive firm, such as that shown in panel (b) of Figure 17-3,price equals marginal cost. For a monopolistically competitive firm, such as thatshown in panel (a), price exceeds marginal cost, because the firm always has somemarket power.CHA PT E R 17 M O N O P O L I S T I C COM PE TI TIO N383 How is this markup over marginal cost consistent with free entry and zeroprofit? The zero-profit condition ensures only that price equals average totalcost. It does not ensure that price equals marginal cost. Indeed, in the long-runequilibrium, monopolistically competitive firms operate on the declining por-tion of their average-total-cost curves, so marginal cost is below average to-tal cost. Thus, for price to equal average total cost, price must be above marginalcost.In this relationship between price and marginal cost, we see a key behavioraldifference between perfect competitors and monopolistic competitors. Imaginethat you were to ask a firm the following question: “Would you like to see anothercustomer come through your door ready to buy from you at your curr ent price?”A perfectly competitive firm would answer that it didn’t care. Because price ex-actly equals marginal cost, the profit from an extra unit sold is zero. By contrast, amonopolistically competitive firm is always eager to get another customer. Be-cause its price exceeds marginal cost, an extra unit sold at the posted price meansmore profit. According to an old quip, monopolistically competitive markets arethose in which sellers send Christmas cards to the buyers.M O NOPO LI STIC C OMP ETI TI O N ANDTH E WELFA R E O F SO CIET YIs the outcome in a monopolistically competitive market desirable from the stand-point of society as a whole? Can policymakers improve on the market outcome?There are no simple answers to these questions.One source of inefficiency is the markup of price over marginal cost. Becauseof the markup, some consumers who value the good at more than the marginalcost of production (but less than the price) will be deterred from buying it. Thus, amonopolistically competitive market has the normal deadweight loss of monopolypricing. We first saw this type of inefficiency when we discussed monopoly inChapter 15.Although this outcome is clearly undesirable compared to the first-best out-come of price equal to marginal cost, there is no easy way for policymakers to fixthe problem. To enforce marginal-cost pricing, policymakers would need to regu-late all firms that produce differentiated products. Because such products are socommon in the economy, the administrative burden of such regulation would beoverwhelming.Moreover, regulating monopolistic competitors would entail all the problemsof regulating natural monopolies. In particular, because monopolistic competitorsare making zero profits already, requiring them to lower their prices to equal mar-ginal cost would cause them to make losses. To keep these firms in business, thegovernment would need to help them cover these losses. Rather than raising taxesto pay for these subsidies, policymakers may decide it is better to live with theinefficiency of monopolistic pricing.Another way in which monopolistic competition may be socially inefficient isthat the number of firms in the market may not be the “ideal” one. That is, theremay be too much or too little entry. One way to think about this problem is interms of the externalities associated with entry. Whenever a new firm considers en-tering the market with a new product, it considers only the profit it would make.Yet its entry would also have two external effects:384PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Y◆ The product-variety externality: Because consumers get some consumer surplusfrom the introduction of a new product, entry of a new firm conveys apositive externality on consumers.◆ The business-stealing externality: Because other firms lose customers andprofits from the entry of a new competitor, entry of a new firm imposes a negative externality on existing firms.Thus, in a monopolistically competitive market, there are both positive and nega- tive externalities associated with the entry of new firms. Depending on which ex- ternality is larger, a monopolistically competitive market could have either too few or too many products.Both of these externalities are closely related to the conditions for monopolis- tic competition. The product-variety externality arises because a new firm would offer a product different from those of the existing firms. The business-stealing ex- ternality arises because firms post a price above marginal cost and, therefore, are always eager to sell additional units. Conversely, because perfectly competitive firms produce identical goods and charge a price equal to marginal cost, neither of these externalities exists under perfect competition.In the end, we can conclude only that monopolistically competitive markets do not have all the desirable welfare properties of perfectly competitive markets. That is, the invisible hand does not ensure that total surplus is maximized under monopolistic competition. Yet because the inefficiencies are subtle, hard to mea- sure, and hard to fix, there is no easy way for public policy to improve the market outcome.QU IC K QU I Z : List the three key attributes of monopolistic competition. ◆ Draw and explain a diagram to show the long-run equilibrium in amonopolistically competitive market. How does this equilibrium differ from that in a perfectly competitive market?F Y I Is Excess Capacity a Social Problem?CHA PT E R 17 M O N O P O L I S T I C COM PE TI TIO N385It is nearly impossible to go through a typical day in a modern economy withoutbeing bombarded with advertising. Whether you are reading a newspaper, watch-ing television, or driving down the highway, some firm will try to convince you tobuy its product. Such behavior is a natural feature of monopolistic competition.When firms sell differentiated products and charge prices above marginal cost,each firm has an incentive to advertise in order to attract more buyers to its partic-ular product.The amount of advertising varies substantially across products. Firms that sellhighly differentiated consumer goods, such as over-the-counter drugs, perfumes,soft drinks, razor blades, breakfast cereals, and dog food, typically spend between10 and 20 percent of revenue for advertising. Firms that sell industrial products,such as drill presses and communications satellites, typically spend very little onadvertising. And firms that sell homogeneous products, such as wheat, peanuts, orcrude oil, spend nothing at all. For the economy as a whole, spending on advertis-ing comprises about 2 percent of total firm revenue, or more than $100 billion.Advertising takes many forms. About one-half of advertising spending is forspace in newspapers and magazines, and about one-third is for commercials ontelevision and radio. The rest is spent on various other ways of reaching cus-tomers, such as direct mail, billboards, and the Goodyear blimp.TH E D E B A TE OVER ADVE R TI S I N GIs society wasting the resources it devotes to advertising? Or does advertisingserve a valuable purpose? Assessing the social value of advertising is difficult andoften generates heated argument among economists. Let’s consider both sides ofthe debate.Th e C ritiqu e of Ad ve r tis in g Critics of advertising argue that firms ad-vertise in order to manipulate people’s tastes. Much advertising is psychologicalrather than informational. Consider, for example, the typical television commercialfor some brand of soft drink. The commercial most likely does not tell the viewerabout the pr oduct’s price or qualit y. Instead, it might show a group of happy peo-ple at a party on a beach on a beautiful sunny day. In their hands are cans of thesoft drink. The goal of the commercial is to convey a subconscious (if not subtle)message: “You too can have many friends and be happy, if only you drink ourpr oduct.” Critics of advertising a rgue that such a commercial creates a desire thatotherwise might not exist.Critics also argue that advertising impedes competition. Advertising oftentries to convince consumers that products are more different than they truly are.By increasing the perception of product differentiation and fostering brand loyalty,advertising makes buyers less concerned with price differences among similargoods. With a less elastic demand curve, each firm charges a larger markup overmarginal cost.Th e D efens e of Adve r tis in g Defenders of advertising argue that firmsuse advertising to provide information to customers. Advertising conveys the386 PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Yprices of the goods being offered for sale, the existence of new products, and thelocations of retail outlets. This information allows customers to make betterchoices about what to buy and, thus, enhances the ability of markets to allocate re-sources efficiently.Defenders also argue that advertising fosters competition. Because advertisingallows customers to be more fully informed about all the firms in the market, cus-tomers can more easily take advantage of price differences. Thus, each firm hasless market power. In addition, advertising allows new firms to enter more easily,because it gives entrants a means to attract customers from existing firms.Over time, policymakers have come to accept the view that advertising canmake markets more competitive. One important example is the regulation of cer-tain professions, such as lawyers, doctors, and pharmacists. In the past, thesegroups succeeded in getting state governments to prohibit advertising in theirfields on the grounds that advertising was “unp r ofessional.” In recent years, how-ever, the courts have concluded that the primary effect of these restrictions on ad-vertising was to curtail competition. They have, therefore, overturned many of thelaws that prohibit advertising by members of these professions.CAS E ST U D Y ADVERTISING AND THE PRICE OF EYEGLASSESWhat effect does advertising have on the price of a good? On the one hand, ad-vertising might make consumers view products as being more different thanthey otherwise would. If so, it would make markets less competitive and firms’demand curves less elastic, and this would lead firms to charge higher prices.On the other hand, advertising might make it easier for consumers to find thefirms offering the best prices. In this case, it would make markets more com-petitive and firms’ demand curves more elastic, and this would lead to lowerprices.In an article published in the Journal of Law and Economics in 1972, economistLee Benham tested these two views of advertising. In the United States duringthe 1960s, the various state governments had vastly different rules about adver-tising by optometrists. Some states allowed advertising for eyeglasses and eyeexaminations. Many states, however, prohibited it. For example, the Florida lawread as follows:It is unlawful for any person, firm, or corporation to . . . advertise eitherdirectly or indirectly by any means whatsoever any definite or indefinite priceor credit terms on prescriptive or corrective lens, frames, completeprescriptive or corrective glasses, or any optometric service. . . . This section ispassed in the interest of public health, safety, and welfare, and its provisionsshall be liberally construed to carry out its objects and purposes.Professional optometrists enthusiastically endorsed these restrictions onadvertising.Benham used the differences in state law as a natural experiment to testthe two views of advertising. The results were striking. In those states that pro-hibited advertising, the average price paid for a pair of eyeglasses was $33.(This number is not as low as it seems, for this price is from 1963, when allprices were much lower than they are today. To convert 1963 prices into to-day’s dollars, you can multiply them by 5.) In those states that did not restrictCHA PT E R 17 M O N O P O L I S T I C COM PE TI TIO N387 advertising, the average price was $26. Thus, advertising reduced averageprices by more than 20 percent. In the market for eyeglasses, and probably inmany other markets as well, advertising fosters competition and leads to lowerprices for consumers.ADVE R TI S I N G A S A SI G NA L O F QUALIT YMany types of advertising contain little apparent information about the productbeing advertised. Consider a firm introducing a new breakfast cereal. A typical ad-vertisement might have some highly paid actor eating the cereal and exclaiminghow wonderful it tastes. How much information does the advertisement reallyprovide?The answer is: more than you might think. Defenders of advertising argue thateven advertising that appears to contain little hard information may in fact tellconsumers something about product quality. The willingness of the firm to spenda large amount of money on advertising can itself be a signal to consumers aboutthe quality of the product being offered.Consider the problem facing two firms—Post and Kellogg. Each company hasjust come up with a recipe for a new cereal, which it would sell for $3 a box. Tokeep things simple, let’s assume that the marginal cost of making cereal is zero, sothe $3 is all profit. Each company knows that if it spends $10 million on advertis-ing, it will get 1 million consumers to try its new cereal. And each company knowsthat if consumers like the cereal, they will buy it not once but many times.First consider Post’s decision. Based on market research, Post knows that itscereal is only mediocre. Although advertising would sell one box to each of 1 mil-lion consumers, the consumers would quickly learn that the cereal is not verygood and stop buying it. Post decides it is not worth paying $10 million in adver-tising to get only $3 million in sales. So it does not bother to advertise. It sends itscooks back to the drawing board to find another recipe.Kellogg, on the other hand, knows that its cereal is great. Each person whotries it will buy a box a month for the next year. Thus, the $10 million in advertis-ing will bring in $36 million in sales. Advertising is profitable here because Kellogghas a good product that consumers will buy repeatedly. Thus, Kellogg chooses toadvertise.Now that we have considered the behavior of the two firms, let’s consider thebehavior of consumers. We began by asserting that consumers are inclined to try anew cereal that they see advertised. But is this behavior rational? Should a con-sumer try a new cereal just because the seller has chosen to advertise it?In fact, it may be completely rational for consumers to try new products thatthey see advertised. In our story, consumers decide to try Kellogg’s new cereal be-cause Kellogg advertises. Kellogg chooses to advertise because it knows that its ce-real is quite good, while Post chooses not to advertise because it knows that itscereal is only mediocre. By its willingness to spend money on advertising, Kelloggsignals to consumers the quality of its cereal. Each consumer thinks, quite sensibly,“Bo y, if the Kellogg Company is willing to spend so much money advertising thisnew cereal, it must be r eally good.”What is most surprising about this theory of advertising is that the content ofthe advertisement is irrelevant. Kellogg signals the quality of its product by itswillingness to spend money on advertising. What the advertisements say is not as388 PA R T FIVE F IRM B EHAVIO R A ND T HE ORGA NIZAT IO N O F INDU ST R Yimportant as the fact that consumers know ads are expensive. By contrast, cheapadvertising cannot be effective at signaling quality to consumers. In our example,if an advertising campaign cost less than $3 million, both Post and Kellogg woulduse it to market their new cereals. Because both good and mediocre cereals wouldbe advertised, consumers could not infer the quality of a new cereal from thefact that it is advertised. Over time, consumers would learn to ignore such cheapadvertising.This theory can explain why firms pay famous actors large amounts of moneyto make advertisements that, on the surface, appear to convey no information atall. The information is not in the advertisement’s content, but simply in its exis-tence and expense.B RA N D NA ME SAdvertising is closely related to the existence of brand names. In many markets,there are two types of firms. Some firms sell products with widely recognizedbrand names, while other firms sell generic substitutes. For example, in a typicaldrugstore, you can find Bayer aspirin on the shelf next to a generic aspirin. In atypical grocery store, you can find Pepsi next to less familiar colas. Most often, thefirm with the brand name spends more on advertising and charges a higher pricefor its product.Just as there is disagreement about the economics of advertising, there is dis-agreement about the economics of brand names. Let’s consider both sides of thedebate.Critics of brand names argue that brand names cause consumers to perceivedifferences that do not really exist. In many cases, the generic good is almost in-distinguishable from the brand-name good. Consumers’ willingness to pay mo refor the brand-name good, these critics assert, is a form of irrationality fostered byadvertising. Economist Edward Chamberlin, one of the early developers of thetheory of monopolistic competition, concluded from this argument that brandnames were bad for the economy. He proposed that the government discourage。

Chap17垄断竞争

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Chap17垄断竞争
自由进入或退出
企业可以没有限制地进入或退出一个市场。市场上企业的数量要一直调整到经济利润为零时为止。
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Monopolistic Competition in the Short Run
Short-run economic profits encourage new firms to enter the market. This:
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Chap17垄断竞争
很多卖者
有许多企业争夺同样的顾客群体。
产品例子包括书籍、CD、电影、电脑游戏、餐馆、钢琴课、点心、家居等等。
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Chap17垄断竞争
Product Differentiation
Each firm produces a product that is at least slightly different from those of other firms.
•Price •Losses
•(b) Firm Makes Losses
•MC •ATC
•Average •total cost
•Price
•MR
•0
•Loss-
•minimizing
•quantity
•Demand
•Quantity
图1. 短期中的垄断竞争企业
•价格
•平均 •总成本
•价格
•(b) 企业亏损
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Chap17垄断竞争
短期中的垄断竞争企业
短期经济利润激励新企业进入市场。这种进入
增加了顾客可以选择的产品数量。减少了市场已有的每家企业面临的需求。使市场已有企业面临的需求曲线向左移动。市场已有企业的产品需求减少，利润下降。

17monopolistic_competition 曼昆微观经济学课件

Monopolistic versus Perfect Competition
• Markup Over Marginal Cost
• For a competitive firm, price equals marginal cost. • For a monopolistically competitive firm, price exceeds marginal cost. • Because price exceeds marginal cost, an extra unit sold at the posted price means more profit for the monopolistically competitive firm.
Copyright © 2004 South-Western
Figure 1 Monopolistic Competition in the Short Run
(a) Firm Makes Profit Price MC ATC
Price Average total cost Profit MR 0 Profitmaximizing quantity Quantity
• Excess Capacity
• There is no excess capacity in perfect competition in the long run. • Free entry results in competitive firms producing at the point where average total cost is minimized, which is the efficient scale of the firm. • There is excess capacity in monopolistic competition in the long run. • In monopolistic competition, output is less than the efficient scale of perfect competition.

英文版微观经济学复习提纲Chapter 10. Monopolistic competition

10Monopolistic Competition: The Competitive Model in a More RealisticSettingChapter SummaryMost markets in Australia have many buyers and sellers, low entry barriers and differentiated goods and services for sale. These are characteristics of monopolistic competition. Each monopolistically competitive firm faces a downward-sloping demand curve so marginal revenue is less than price. Firms maximise profit by producing the level of output that makes marginal revenue equal marginal cost. The firm may earn an economic profit or suffer an economic loss in the short run. Since there are low entry barriers, economic profits will cause new firms to enter the market. A firm that earns short-run profits will earn zero economic profit in the long run as entry from new firms shifts the firm’s demand curve to the left and causes it to become more elastic. If a firm suffers economic losses in the short run, other firms will exit the market and shift the firm’s demand curve to the right and cause it to become less elastic. In the long run, the firm’s demand curve will be tangent to its long-run average total cost curve, but average total cost will be greater than its minimum level.Monopolistic competition and perfect competition differ in their long-run equilibrium positions. Monopolistically competitive firms charge a price greater than marginal cost and they do not produce at minimum average total cost. A monopolistically competitive firm has excess capacity. If it increases its output it could produce at a lower average cost. But consumers benefit from being able to purchase a product that is differentiated and more closely suited to their tastes.Firms can use marketing to differentiate their products. Marketing tools include brand management and advertising.Learning ObjectivesWhen you finish this chapter you should be able to:1.Explain why a monopolistically competitive firm has a downward-sloping demand curve.A monopolistically competitive firm is able to raise its price without losing all of its customers.Some customers are willing to pay the higher price because the firm has a favourable location, can offer better service or a higher quality product, among other reasons.2.Explain how a monopolistically competitive firm decides the quantity to produce and theprice to charge. All firms maximise profits by producing where marginal revenue is equal to marginal cost. Since price is greater than marginal revenue, a monopolistically competitive firmMonopolistic competition: the competitive market in a more realistic setting 154 produces where price is greater than marginal cost. The firm will earn economic profits if its price exceeds average total cost in the short run.3.Analyse the situation of a monopolistically competitive firm in the long run. Since entrybarriers are low in monopolistically competitive industries, short-run profits give entrepreneurs an incentive to enter the market and establish new firms. The entry of new firms will shift the demand curves of existing firms to the left and make them more elastic. If firms suffer short-run economic losses, some firms will exit the industry in the long run. This will shift the demand curves of remaining firms to the right and make them more inelastic. In the long run, the demand curve of a typical firm will be tangent to its average total cost curve.pare the efficiency of monopolistic competition and perfect competition. In the long runthe profit-maximising level of output for a monopolistically competitive firm occurs where price is greater than marginal cost and the firm is not at the minimum point of its average total cost curve. Unlike a perfectly competitive firm, a monopolistically competitive firm does not achieve allocative efficiency or productive efficiency.5.Define marketing and explain how firms use it to differentiate their products. Marketingrefers to all the activities necessary for a firm to sell a product to consumers. Firms use brand management and advertising to earn profits and defend profits from competitors.6.Identify the key factors that determine a firm’s profitability. The most important factorsunder a firm’s control are its ability to differentiate its product and to produce at a lower average cost than competing firms. Other factors that affect profitability are not under a firm’s control.These factors include the prices of the inputs it uses in production and random chance. Chapter ReviewChapter Opener: Starbucks: Growth through Product DifferentiationSince the first Starbucks coffee shop opened in 1971, the firm has grown into a worldwide company. But the growth has been in the number of shops, over 8,000, rather than the size of the shops themselves. Starbucks faces competition from other firms. Neighbourhoods often have three or more coffeehouses. Barriers to entry into the market for coffeehouses are low and firms differentiate their products by offering different menus and services.Demand and Marginal Revenue for a Firm in a Monopolistically Competitive MarketMonopolistic competition is a market structure in which barriers to entry are low, and many firms compete by selling similar, but not identical, products. Production differentiation allows monopolistically competitive firms to raise their prices without losing all their customers. (A price increase will, however, cause some customers to switch to another similar product.)The control monopolistically competitive firms have over their prices is limited because they face competition from firms selling similar products. Since firms face downward-sloping demand curves when marginal revenue is less than price.10155 ChapterHelpful Study HintRestaurants, convenience stores, bookstores and petrol stations are all examples ofmonopolistically competitive firms. Petrol stations display their prices so thatdifferences between stations can easily be compared. Many motorists are willing tobuy at a slightly higher per litre price if a station is in a more convenient location thana station that offers a lower price. Some consumers believe there are differencesbetween various brands of petrol. These customers are willing to pay a somewhathigher price for what they perceive as a superior product. The next time you drive orride in a car, notice how much difference there is between the prices charged by thestations you pass.How a Monopolistically Competitive Firm Maximises Profits in the Short RunAs with firms in other markets, a monopolistically competitive firm will maximise profits by producing the level of output that makes marginal revenue (MR) equal to marginal cost (MC). Because the MR curve lies below the firm’s demand curve, the firm will maximise profits where price (P) exceeds MC.Helpful Study HintThe table and graph in Figure 10.4 provide an example of a firm that makes a short-run profit. Notice that (a) the relevant values for MR, MC and ATC are determined atthe profit-maximising quantity, or where MR=MC, (b) when firms earn profits theATC curve crosses the demand curve at two points, and (c) at the profit maximisingoutput P > MR.What Happens to Profits in the Long Run?Short-run profits give entrepreneurs an incentive to enter a market and establish new firms. The demand curve of an established firm shifts to the left as new firms enter the market. Entry will continue until the firm’s demand curve is tangent to its ATC curve. In the long run, the firm’s price will equal average total cost, the firm breaks even and the firm’s demand curve becomes more elastic.Short-run losses will lead some firms to exit their market. As a result, the demand curve for a firm remaining in the market shifts to the right and becomes less elastic. The exit of firms continues until the representative firm can charge a price equal to the average total cost in the long run.Monopolistic competition: the competitive market in a more realistic setting 156Helpful Study HintThis section of the textbook contains several features to help you understand thetransition of the market from short-run to long-run equilibrium. Don’t Let ThisHappen to You! (pages 321-2) warns you not to confuse economic and accountingprofit. Graphs in Figure 10.5 (page 320) illustrate the short run for a firm earningprofits and how these profits are eliminated in the long run firm. Table 10.2 (page321) offers a comprehensive graphical summary of the short run and long run for amonopolistically competitive firm. Making the Connection 10.1 (page 322) andSolved Problem 10.2 (page 322) use the experience of Apple Computers to analysethe short run and long run under monopolistic competition. Making the Connection10.2 describes the efforts of a cosmetics company to stay ahead of its competition.Comparing Perfect Competition and Monopolistic CompetitionThere are two important differences between long-run equilibrium perfect competition and monopolistic competition. Monopolistically competitive firms charge a price greater than marginal cost and they do not produce at minimum average total cost. Since price exceeds marginal cost, allocative efficiency is not achieved, and since price is greater than minimum average total cost, productive efficiency is not achieved. Monopolistically competitive firms have excess capacity. Despite these characteristics, consumers benefit from purchasing products that are differentiated.Helpful Study HintAlthough monopolistic competition appears to fall short of perfect competition interms of economic efficiency, the textbook rightly notes that consumers are willing topay for the variety offered by monopolistically competitive firms. Consider usingpetrol stations once again as an example. Let’s say there are three petrol stations on asingle street corner. During most hours of the day at least one or two of the stationsare not busy; one can interpret this as excess capacity. But during rush hours all threestations have customers. Enough drivers are willing to pay to keep all three stationsoperating for the convenience of not waiting in long lines during peak hours.Supermarkets offer another example of consumers’ willingness to pay for greaterconvenience. Most supermarkets open additional check-out lines – some forconsumers with just a few items to buy – when long lines start to form.How Marketing Differentiates ProductsFirms can differentiate their products through marketing. Marketing refers to all the activities necessary for a firm to sell a product to a consumer. Firms use two marketing tools to differentiate their products. The first marketing tool is brand management. Brand management refers to the actions of a firm157 Chapter10intended to maintain the differentiation of a product over time. Economic profits are earned when a firm introduces a new product, but this leads to the entry of firms producing similar products and the profits are eliminated. Firms use brand management to put off the time when they will no longer be able to earn profits. The second marketing tool is advertising. Advertising shifts the demand curve for a product to the right and makes the demand curve more inelastic. Successful advertising allows the firm to sell more at every price. Advertising also increases costs. If the increase in revenue from advertising exceeds the costs, profits will rise.Once a firm has established a brand name it has an incentive to defend it. Firms can apply for a trademark. A trademark grants legal protection against other firms using a product’s name. Companies will spend substantial amounts of money to ensure that their brand names are entitled to legal protection. If firms do not prevent the unauthorised use of their trademarks, they may be no longer entitled to legal protection.What Makes a Firm Successful?A firm can control some of the factors that allow it to make economic profits. Other factors are uncontrollable. Controllable factors include the ability a firm has to differentiate its product and the ability a firm has to produce at a lower average total cost than competing firms. Uncontrollable factors include input prices, changes in consumer tastes and random chance.Solved ProblemChapter 10 in the textbook includes two Solved Problems to support learning objectives 2 (“Explain how a monopolistically competitive firm decides the quantity to produce and the price to charge”) and 3 (“Analyse the situation of a monopolistically competitive firm in the long run”). The following Solved Problem supports another of this chapter’s learning objectives.Solved Problem 12-3 Supports learning objective 5: Define marketing and explain how firms use it to differentiate their products.We Came. We Marketed. We Sold.3Com Corporation was incorporated in the U.S. in 1979 and specialises in providing computer network devices such as routers and network switches. Among 3Com’s clients are businesses that want to improve the communication and security capabilities of their computer systems. 3Com is not a household name in the manner of McDonald’s or Microsoft, but marketing is an important part of the company’s success. It faces stiff competition from other computer service providers, such as Cisco Systems, and uses advertising and trademarks to influence its customers. 3Com’s advertising efforts are aimed primarily at computer network managers; for example, an advertising agency developed a two-page ad for 3Com titled “We Came. We Saw. We Routed.” Ads such as these are placed in publications most likely to be seen by the target audience. It would be less effective for 3Com to place ads in People or Time magazines, since few of their readers are computer network managers, than it would be to advertise in business publications. The importance of establishing and maintaining 3Com’s trademarks is indicated by the guidelines the firm’s legal experts issue to employees. The following is a small sample of these guidelines for over 40 company and product trademarks:Always Use a Trademark as an Adjective, Followed by the Appropriate Description(s).If not, the trademark could become generic…make sure that 3Com and the ® symbol(3Com®) precedes a trademark mention of the product or service.Monopolistic competition: the competitive market in a more realistic setting 158 Correct: The 3Com® NBX® business telephone has powerful call processingfeatures. Incorrect: NBX® has powerful call-processing features.Sources: /corpinfo/en_US/legal/trademark/tmn_list.html/Portfolio/Advertising/advertising.html(a) Define marketing and explain the importance of marketing to firms.(b) Explain how 3Com Corporation uses marketing to differentiate its products.Solving the ProblemStep 1: Review the chapter material. Since this refers to the material in “How Marketing Differentiates Products,” you may want to review this section of the textbook which begins on page 327.Step 2: Define marketing and explain the importance of marketing to firms. Marketing refers to all the activities necessary for a firm to sell a product to a consumer. To earn profits, monopolistically competitive firms must differentiate their products. These firms use two marketing tools to do this: brand management and advertising.Step 3: Explain how 3Com Corporation uses marketing to differentiate its products. 3Com Corporation uses brand management, including extensive use of trademarks, and advertising to differentiate its products. 3Com Corporation focuses its marketing strategies on its customers; such as computer network managers.Self-Test(Answers are provided at the end of the Self-Test.)Multiple-Choice Questions1Why does a monopolistically competitive firm have a downward-sloping demand curve?a Because the firm is considered to be a monopoly in its own market.b Because changing the price will affect the quantity sold.c Because the firm is close to a price taker, like a wheat farmer.d Because the level of output produced depends on the cost structure of the firm.2In which case is the firm’s demand curve the same as marginal revenue?a In the monopolistically competitive case.b In the perfectly competitive case.c In both the monopolistically competitive case and the perfectly competitive case.d In neither the monopolistically competitive case nor the perfectly competitive case.3Which of the following measures is conceptually the same as price?a Marginal revenue.b Total revenue.c Average revenue.d None of the above.159 Chapter104When a monopolistically competitive firm cuts price, good and bad things happen. Which of the following is considered a good thing?a The price effect.b The output effect.c The revenue effect.d All of the above are good things.5Refer to the table below. What is the average revenue associated with the sixth unit of output produced and sold?a$3.00b$2.00c$0.50d None of the above. There is insufficient information to answer the question.6Refer to the figure below. A downward move along the demand curve results in a gain and a loss of revenue. Which area represents the loss of revenue?a Area A.b Area B.c Both A and B represent revenue losses.d An area not shown.Monopolistic competition: the competitive market in a more realistic setting 1607If a firm has the ability to affect the price of the good or service it sells, what is the relationship between its marginal revenue curve and its demand curve?a The firm will have a marginal revenue curve that is above its demand curve.b The firm will have a marginal revenue curve that is below its demand curve.c The firm will have a marginal revenue curve that is the same as its demand curve.d The firm will have an upward-sloping marginal revenue curve and a downward-slopingdemand curve.8Which of the following types of firms use the marginal revenue equals marginal cost approach to maximise profits?a Perfectly competitive firms.b Monopolistically competitive firms.c Both perfectly competitive and monopolistically competitive firms.d Neither perfectly competitive nor monopolistically competitive firms.9Refer to the figure below. In order to maximise profit, what price should the firm charge?a$18b$15c$8d$410Refer to the figure below. Which firm is maximising profits?a The firm on the left.b The firm on the right.c Both firms.d Neither firm.161 Chapter1011Refer to the figure below. When total cost is subtracted from total revenue, which area remains?a Area A.b Area B.c Area A + B.d None of the above. That information cannot be obtained from this graph.Monopolistic competition: the competitive market in a more realistic setting 162 12Refer to the table below. What level of output should be produced in order to maximise profit?a 1 unit of output.b 5 units of output.c 6 units of output.d10 units of output.13How does the entry of new coffeehouses affect the profits of existing coffeehouses?a Entry will shift the market demand curve for coffee to the right.b Entry will shift the firm’s demand curve to the right.c Entry will make the firm’s demand curve more elastic.d Entry will in no way affect the profits of existing coffeehouses.14Refer to the figure below. Which graph depicts a situation in which firms might exit the industry?a The graph on the left.b The graph in the middle.c The graph on the right.d None of the above.15Refer to the figure below. Which graph best depicts the profit or loss situation for a monopolistically competitive firm in the long run?a The graph on the left.b The graph in the middle.c The graph on the right.d None of the above.16For a monopolistically competitive firm, is zero economic profit inevitable in the long run?a Yes. There is nothing the firm can do to avoid zero economic profit in the long run.b No. A firm could try to avoid losing its profit in the long run by producing a productidentical to those of competing firms.c No. A firm could try to avoid losing profits by reducing production costs and improvingits products.d No. A firm could simply offer goods that are cheaper to produce even if they have lessvalue than those offered by competing firms.17Refer to the graph below. Which equilibrium level of output indicates excess capacity?a Q1.b Q2.c Both Q1 and Q2.d Neither Q1 nor Q2.18What trade-offs do consumers face when buying a product from a monopolistically competitive firm?a Consumers pay a lower price but also have fewer choices.b Consumers pay a price greater than marginal cost but also have choices more suited totheir tastes.c Consumers pay a higher price but are happy knowing that the industry is highly efficient.d Consumers pay a price as low as the competitive price but have difficulty finding andbuying the product.19What is the term given to the actions of a firm intended to maintain the differentiation of a product over time?a Brand management.b Advertising.c Marketing.d Campaigning.20Refer to the figure below. Which of the following terms is missing in the box on the right?a Brand management.b Marketing.c Profitability.d Demand.Short Answer Questions1.Describe how Starbucks has used brand management to differentiate its products.2.What is the most important characteristic that perfectly competitive and monopolisticallycompetitive firms have in common?3.Why is it not possible for a monopolistically competitive firm to produce at minimum averagetotal cost in long run equilibrium?4.The overall strength of the economy has an important influence on the profits of firms. Althoughfirms cannot affect the economy’s performance, knowledge of how economy-wide changes affect the demand for their products can help firms respond to these changes. What product information would be most useful for firms to have?5.Some of Coca-Cola’s employees are required to visit restaurants and bars and order mixeddrinks. What motivation would Coca-Cola have to encourage their employees to “drink on the job?”True/False QuestionsT F 1. The marginal revenue curve lies below the demand curve for any firm that hasthe ability to affect the price of the product it sells.T F 2. Monopolistically competitive firms charge a price greater than marginal costin both the short run and the long run.T F 3. Unlike perfectly competitive firms, monopolistically competitive firms earnlong run profits.T F 4. When some firms exit a monopolistically competitive market, the demand curves of firms that remain become less elastic.T F 5. Among the factors that make a firm successful but are not under its control isthe ability to differentiate its product.T F 6. Brand management refers to all activities necessary for a firm to sell a productto a consumer.T F 7. Unlike perfectly competitive firms, monopolistically competitive firms haveexcess capacity.T F 8. Because a monopolistically competitive firm has a downward sloping demandcurve, marginal revenue will always be lower than price.T F 9. An important reason why Starbucks has been able to maintain control over theoperations of its coffeehouses is that they are all company-owned, notfranchises.T F 10. One motive for advertising is to make the demand for a product more elasticso that when price is lowered there will be a greater increase in quantitydemanded.Answers to the Self-TestMultiple-Choice QuestionsQuestion Answer Explanation1 b Because changing the price affects the quantity sold, a monopolisticallycompetitive firm will face a downward-sloping demand curve, rather than the horizontal demand curve faced by a competitive firm, like a wheat farmer. 2 bA perfectly competitive firm faces a horizontal demand curve and does not have to cut the price in order to sell a larger quantity. A monopolistically competitive firm, however, must cut the price to sell more, so its marginal revenue curve will slope downward and will be below its demand curve. 3 cPrice is revenue per unit, or average revenue. Average revenue is equal to total revenue divided by quantity. Because total revenue equals price multiplied by quantity, dividing by quantity leaves just price. Therefore, average revenue is always equal to price. This will be true for firms in any of the four market structures. 4 bWhen the firm cuts the price by $0.50, one good thing and one bad thing happen: The good thing: It sells one more café latte; we can call this the output effect. The bad thing: It receives $.050 less for each café latte that it could have sold at the higher price; we can call this the price effect. 5 aAverage revenue equals price, which is $6.00 when six units are sold. Or, average revenue equals total revenue divided by output, or $18.00/6 = $3.00. 6 aArea A shows the loss of revenue from a price cut = $.50 x 5 = $2.50. 7 bEvery firm that has the ability to affect the price of the good or service it sells will have a marginal revenue curve that is below its demand curve. Only firms in perfectly competitive markets, which can sell as many units as they want at the market price, have marginal revenue curves that are the same as their demand curves. 8 cAll firms use the same approach to maximise profits: Produce where marginal revenue is equal to marginal cost. 9 bMarginal cost equals marginal revenue when 900 units of output are produced and sold. Consumers are willing to pay $15 for 900 units. 1 cIn both cases, the output level is set where marginal revenue equals marginal cost. 11 aCorrect. Profit = (P – ATC) Q, or alternatively, Profit = TR – TC, where TR = P x Q, and TC = ATC x Q. 12 b At this level of output, marginal revenue of $1.50 equals marginal cost.13 c As new coffeehouses open, the firm’s demand curve will shift to the left. Thedemand curve will shift because the existing firms will sell fewer cups of coffeeat each price now that there are additional coffee coffeehouses in the area selling similar drinks. The demand curve will also become more elastic becauseconsumers in the area now have additional coffeehouses from which to buycoffee, so existing firms will lose more customers if they raise their prices.14 b Since price is less than average total cost, the firm is suffering losses. Firm losses will lead to the exit of some firms in the industry.15 b In the long run, a monopolistically competitive firm earns zero economic profit, or P = ATC.16 c Firms try to avoid losing profits by reducing the cost of producing their products,by improving their products, or by convincing consumers their products areindeed different from what competitors offer. To stay one step ahead of itscompetitors, a firm has to offer consumers goods or services that they perceiveto have greater value than those offered by competing firms.17 a The monopolistically competitive firm has excess capacity equal to thedifference between its profit-maximising level of output and the productivelyefficient level of output.18 bConsumers face a trade-off when buying the product of a monopolisticallycompetitive firm: They are paying a price that is greater than marginal cost andthe product is not being produced at minimum average cost, but they benefit from being able to purchase a product that is differentiated and more closelysuited to their tastes.19 a The actions of a firm intended to maintain the differentiation of a product over time are called brand management.20 c The factors under a firm’s control—the ability to differentiate its product and theability to produce it at lower cost—combine with the factors beyond its controlto determine the firm’s profitability.Short Answer Responses1. The textbook describe several brand management methods Starbucks uses to differentiate itsproducts. “Competitors have found it difficult to duplicate Starbucks’ European espresso bar atmosphere…Most importantly, Starbucks has continued to be very responsive to its customers’ preferences…” In addition, company-owned coffeehouses (rather than franchise businesses) enable Starbucks to have greater control of the products sold and how they are marketed. Despite the success it has enjoyed, low entry barriers will eventually enable other firms to copy much of what Starbucks has done. Starbucks must continue to use brand management techniques to postpone the time when its economic profits are eliminated.2. Low entry barriers are common to both market structures. This ensures that firms earn zeroeconomic profits in the long run.。

Chapter 16a test bank

Chapter 16OligopolyTest A1. Markets with only a few sellers, each offering a product similar or identical to the others, aretypically referred to asa. monopoly markets.b. perfectly competitive markets.c. monopolistically competitive markets.d. oligopoly markets.ANSWER: d. oligopoly markets.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y2. Firms in industries that have competitors but, at the same time, do not face so much competition thatthey are price takers, are operating in either a(n)a. monopoly or monopolistically competitive market.b. monopolistically competitive or perfectly competitive market.c. oligopoly or monopoly market.d. oligopoly or monopolistically competitive market.ANSWER: d. oligopoly or monopolistically competitive market.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y3. Firms in the United States are typically classified asa. duopolists.b. imperfectly competitive.c. oligopolists.d. perfectly competitive.ANSWER: b. imperfectly competitive.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y4. Which list contains all market structures having many firms?a. oligopoly and perfect competitionb. oligopoly and monopolistic competitionc. perfect competition and monopolistic competition.d. oligopoly, perfect competition, and monopolistic competition.ANSWER: c. perfect competition and monopolistic competition.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y5. As a group, oligopolists are always better-off collectively if theya. decrease prices.b. limit production.c. increase production.d. each operate according to their own self-interest.ANSWER: b. limit production.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y176 Chapter 16/Oligopoly6. Because each oligopolist cares about its own profit rather than the collective profit of their industrya. society is worse-off.b. they are unable to maintain monopoly power.c. they are able to maximize industry profits.d. All of the above are correct.ANSWER: b. they are unable to maintain monopoly power.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:YThe information in the table depicts the total demand for premium channel digital cable TV subscriptions in a small urban market. Assume that digital cable TV operators each pay a fixed cost of $80,000 (per year) to provide premium digital channels in their market area and that the marginal cost of providing the premium channel service to a household is zero.7. According to this table, assume that there are two profit-maximizing digital cable TV companiesoperating in this market. Further assume that they are able to “collude” on price and quantity of premium digital channel subscriptions to sell. As part of their collusive agreement they decide to take an equal share of the market. How much profit will each company make?a. $160,000b. $140,000c. $120,000d. $100,000ANSWER: b. $140,000TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:N INSTRUCTION: 18. According to this table, what will be the quantity produced if the market is a monopoly? What willbe the quantity produced if the market is a two-firm oligopoly where the two firms are unable to collude and reach a Nash equilibrium?a. monopoly production 4,000, oligopoly production 8,000b. monopoly production 6,000, oligopoly production 8,000c. monopoly production 8,000, oligopoly production 10,000d. None of the above is correctANSWER: b. monopoly production 6,000, oligopoly production 8,000TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM: N INSTRUCTION: 19. When an oligopoly market is in Nash equilibrium,a. a firm’s best pricing strategy depends on the strategy of other firms.b. market price will be different for each firm.c. individual firms will not behave as profit maximizers.d. All of the above are correct.ANSWER: a. a firm’s best pricing strategy depends on the strategy of other firms.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:YChapter 16/Oligopoly 17710. Cartels are often short-lived becausea. laws often prohibit explicit collusive agreements among competitors.b. self-interest often conflicts with cooperation.c. it is difficult to enforce agreements reached by cartels.d. All of the above are correct.ANSWER: d. All of the above are correct.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y11. As the number of firms in an oligopoly grows larger, price and output in that market approacha. those in a competitive market.b. those in a monopoly.c. the Nash equilibrium of a duopoly.d. None of the above is correct.ANSWER: a. those in a competitive market.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:YTwo firms are suspected of dumping toxic chemicals at a location unknown to the government who will be unable to find the site unless one of the firms reveals it. Each firm has been presented with an opportunity to lower their liability in the suit if they reveal the site to the government.12. According to this decision box, if both firms follow a dominant strategy, the losses of Firm A andFirm B respectively will bea. –$30 b and –$25b.b. –$60 b and –$15 b.c. –$15 b and–$60 b.d. –$20 b and –$20 b.ANSWER: a. –$30 b and –$25 b.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM: N INSTRUCTION: 213. According to this decision box, which of the following is the dominant strategies for the firms?a. Firm A should reveal the site and Firm B should keep it secret.b. Firm A should keep the site secret and Firm B should reveal it.c. Both firms should reveal the site.d. Both firms should keep the site secret.ANSWER: c. Both firms should reveal the site.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM: N INSTRUCTION: 2178 Chapter 16/Oligopoly14. In a world with only two countries, the noncooperative outcome to an “arms race” game is clearlya. bad for society.b. the best possible outcome for society.c. optimal for one player at the expense of the other.d. better than the cooperative outcome.ANSWER: a. bad for society.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y15. Very often, the reason that players can solve the priso ners’ dilemma game and reach the mostprofitable outcome is thata. the game becomes more competitive.b. they play the game not once, but many times.c. each player tries to capture a large portion of the market share.d. All of the above can solve th e prisoners’ dilemma.ANSWER: b. they play the game not once, but many times.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y16. In a two-person repeated game, a tit-for-tat strategy starts witha. cooperation and then each player mimics the other player’s last move.b. cooperation and then each player is unresponsive to the strategic moves of the other player.c. non-cooperation and then each player pursues his or her own self-interest.d. non-cooperation and then each player cooperates when the other player demonstrates a desirefor the cooperative solution.ANSWER: a. cooperation and then each player mimics the other player’s last move.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y17. Two students are suspected of cheating together on an exam. If both confess they each get an F onthe exam. If one confesses she gets an F in the course and the other student is expelled. If neither student confesses there is no penalty. Considering only these consequences a student shoulda. confess if he is certain the other will not confess.b. never confess.c. always confess.d. confess if he is certain the other will confess.ANSWER: d. confess only if he is certain the other will confess.TYPE: M KEY1:D SECTION: 3 OBJECTIVE: 3 RANDOM:Y18. The Sherman Antitrust Acta. was passed to encourage judicial leniency in the review of cooperative agreements.b. was concerned with Nash equilibria dominated by self-interest in prisoners’ dilemma games.c. provided tax advantages to firms who engaged in competitive behavior.d. restricted the ability of competitors to engage in cooperative agreements.ANSWER: d. restricted the ability of competitors to engage in cooperative agreements.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y19. Antitrust laws in general are used toa. prevent oligopolists from acting in ways that make markets less competitive.b. help oligopolists resolve their version of the prisoner’s dilemma.c. encourage oligopolists to pursue cooperative-interest at the expense of self-interest.d. All of the above are correct.ANSWER: a. prevent oligopolists from acting in ways that make markets less competitive.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:YChapter 16/Oligopoly 179 20. Suppose discount electronics retailers free ride on information about products provided bynondiscount retailers. The information that is provided about products isa. greater than the optimal quantity.b. the optimal quantity.c. less than the optimal quantity.d. Not necessarily any one of the above.ANSWER: c. less than the optimal quantity.TYPE: M KEY1:D SECTION: 4 OBJECTIVE: 4 RANDOM:Y21. The practice of requiring someone to buy two or more items together isa. illegal because it allows firms to form collusive arrangements.b. not illegal because it increases the well-being of society.c. illegal because it allows firms to expand their market power.d. not illegal because collusive agreements are conducive to cooperative outcomes.ANSWER: c. illegal because it allows firms to expand their market power.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y22. The practice of selling a product to retailers and requiring the retailers to charge a specific price forthe product is calleda. resale price maintenance.b. fixed retail pricing.c. unfair trade.d. cost plus pricing.ANSWER: a. resale price maintenance.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y23. In 1971, Congress passed a law that banned cigarette advertising on television. After the ban it ismost likely that,(i) the prisoners’ dilemma for the two companies with respect to tel evision advertising was solved.(ii) profits of cigarette companies fell.(iii) profits of cigarette companies rose.a. (i) and (ii)b. (ii) and (iii)c. (i) and (iii)d. All of the above are correct.ANSWER: c. (i) and (iii)TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y24. Predatory pricing is best exemplified when a firma. exercises its monopoly power by raising its price.b. cuts its prices in order to make itself more competitive.c. cuts its prices temporarily in order to drive out any competition.d. exercises its oligopoly power by raising its price through the formation of a cartel. ANSWER: c. cuts its prices temporarily in order to drive out any competition.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y180 Chapter 16/Oligopoly25. A central issue in the Microso ft antitrust lawsuit involved Microsoft’s integrating its Internetbrowser into its Windows operating system, to be sold as one unit. This practice is known asa. collusion.b. tying.c. resale price maintenance.d. price fixing.ANSWER: b. tying.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y1 ANSWER: d. oligopoly markets.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y2 ANSWER: d. oligopoly or monopolistically competitive market.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y3 ANSWER: b. imperfectly competitive.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y4 ANSWER: c. perfect competition and monopolistic competition.TYPE: M KEY1:D SECTION:1 OBJECTIVE: 1 RANDOM:Y5 ANSWER: b. limit production.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y6 ANSWER: b. they are unable to maintain monopoly power.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y7 ANSWER: b. $140,000TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:N INSTRUCTION: 18 ANSWER: b. monopoly production 6,000 oligopoly production 8,000TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM: N INSTRUCTION: 19 ANSWER: a. a firm’s best pricing strategy depends on the strategy of other firms. TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y10 ANSWER: d. All of the above are correct.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:Y11 ANSWER: a. those in a competitive market.TYPE: M KEY1:D SECTION:2 OBJECTIVE: 2 RANDOM:YChapter 16/Oligopoly 181 12 ANSWER: a. –$30 b and –$25 b.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM: N INSTRUCTION: 213 ANSWER: c. Both firms should reveal the site.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM: N INSTRUCTION: 214 ANSWER: a. bad for society.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y15 ANSWER: b. they play the game not once but many times.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y16 ANSWER: a. cooperation and then each player mimics the other player's last move.TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y17 ANSWER: d. confess if he is certain the other will confess.TYPE: M KEY1:D SECTION: 3 OBJECTIVE: 3 RANDOM:Y18 ANSWER: d. restricted the ability of competitors to engage in cooperative agreements.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y19 ANSWER: a. prevent oligopolists from acting in ways that make markets less competitive. TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y20 ANSWER: c. less than the optimal quantity.TYPE: M KEY1:D SECTION: 4 OBJECTIVE: 4 RANDOM:Y21 ANSWER: c. illegal because it allows firms to expand their market power.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y22 ANSWER: a. resale price maintenance.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y23 ANSWER: c. (i) and (iii)TYPE: M KEY1:D SECTION:3 OBJECTIVE: 3 RANDOM:Y182 Chapter 16/Oligopoly24 ANSWER: c. cuts its prices temporarily in order to drive out any competition. TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y25 ANSWER: b. tying.TYPE: M KEY1:D SECTION:4 OBJECTIVE: 4 RANDOM:Y。

国际贸易英文版教材

作者、书名、出版社、出版年份、目录Thomas A．Pugel. International Economics(15th). Renmin University of China p ress. 2012-12CONTENTSChapter 1 International Economics Is DifferentFour ControversiesEconomics and the Nation-StateThe Scheme of This BookPART ONE THE THEORY OF INTERNATIONAL TRADEChapter 2 The Basic Theory Using Demand and SupplyFour Questions about TradeA Look AheadDemand and SupplyCase Study Trade Is ImportantGlobal Crisis The Trade Mini-Collapse of 2009Two National Markets and the Opening of TradeChapter 3 Why Everybody Trades: Comparative Advantage 33Adam Smith’s Theory of Absolute AdvantageCase Study Mercantilism: Older Than Smith—and Alive TodayRicardo’s Theory of Comparative AdvantageRicardo’s Constant Costs and the Producti on-Possibility CurveFocus on Labor Absolute Advantage Does MatterExtension What If Trade Doesn’t Balance?Chapter 4 Trade: Factor Availability and Factor Proportions Are KeyProduction with Increasing Marginal CostsCommunity Indifference CurvesProduction and Consumption TogetherFocus on China The Opening of Trade and China’s Shift Out of AgricultureThe Gains from TradeTrade Affects Production and ConsumptionWhat Determines the Trade Pattern?The Heckscher–Ohlin (H–O) TheoryChapter 5 Who Gains and Who Loses from Trade?Who Gains and Who Loses within a CountryThree Implications of the H–O TheoryExtension A Factor-Ratio ParadoxDoes Heckscher–Ohlin Explain Actual Trade Patterns?Case Study The Leontief ParadoxWhat Are the Export-Oriented and Import-Competing Factors?Focus on China China’s Exports and ImportsDo Factor Prices Equalize Internationally?Focus on Labor U.S. Jobs and Foreign Trade 86Chapter 6 Scale Economies, Imperfect Competition, and TradeScale EconomiesIntra-Industry TradeMonopolistic Competition and TradeExtension The Individual Firm in MonopolisticOligopoly and TradeExtension The Gravity Model of TradeChapter 7 Growth and TradeBalanced versus Biased GrowthGrowth in Only One FactorChanges in the Country’s Willingness to TradeCase Study The Dutch Disease and DeindustrializationEffects on the Country’s Terms of TradeTechnology and TradeFocus on Labor Trade, Technology, and U.S. WagesPART TWO TRADE POLICYChapter 8 Analysis of a TariffGlobal Governance WTO and GATT: Tariff SuccessA Preview of ConclusionsThe Effect of a Tariff on Domestic ProducersThe Effect of a Tariff on Domestic ConsumersThe Tariff as Government RevenueThe Net National Loss from a TariffExtension The Effective Rate of ProtectionCase Study They Tax Exports, TooThe Terms-of-Trade Effect and a Nationally Optimal TariffChapter 9 Nontariff Barriers to ImportsTypes of Nontariff Barriers to ImportsThe Import QuotaGlobal Governance The WTO: Beyond TariffsGlobal Crisis Dodging ProtectionismExtension A Domestic Monopoly Prefers a QuotaVoluntary Export Restraints (VERs)Other Nontariff BarriersCase Study VERs: Two ExamplesCase Study Carrots Are Fruit, Snails Are Fish, and X-Men Are Not HumansHow Big Are the Costs of Protection?International Trade DisputesFocus on China China’s First Decade in the WTOChapter 10 Arguments for and against ProtectionThe Ideal World of First BestThe Realistic World of Second BestPromoting Domestic Production or EmploymentThe Infant Industry ArgumentFocus on Labor How Much Does It Cost to Protect a Job?The Dying Industry Argument and Adjustment AssistanceThe Developing Government (Public Revenue) ArgumentOther Arguments for Protection: Non=economic ObjectivesThe Politics of Protection The Basic Elements of the Political-Economic Analysis Case Study How Sweet It Is (or Isn’t)Chapter 11 Pushing ExportsDumpingReacting to Dumping: What Should a Dumpee Think?Actual Antidumping Policies: What Is Unfair?Case Study Antidumping in ActionProposals for ReformExport SubsidiesWTO Rules on SubsidiesShould the Importing Country Impose Countervailing Duties?Case Study Agriculture Is AmazingStrategic Export Subsidies Could Be GoodGlobal Governance Dogfight at the WTOChapter 12 Trade Blocs and Trade BlocksTypes of Economic BlocsIs Trade Discrimination Good or Bad?The Basic Theory of Trade Blocs: Trade Creation and Trade DiversionOther Possible Gains from a Trade BlocThe EU ExperienceCase Study Postwar Trade Integration in EuropeNorth America Becomes a BlocTrade Blocs among Developing CountriesTrade EmbargoesChapter 13 Trade and the EnvironmentIs Free Trade Anti-Environment?Is the WTO Anti-Environment?Global Governance Dolphins, Turtles, and the WTOThe Specificity Rule AgainA Preview of Policy PrescriptionsTrade and Domestic PollutionTrans-border PollutionGlobal Environmental ChallengesChapter 14 Trade Policies for Developing CountriesWhich Trade Policy for Developing Countries?Are the Long-Run Price Trends against Primary Producers?Case Study Special Challenges of TransitionInternational Cartels to Raise Primary-Product PricesImport-Substituting Industrialization (ISI)Exports of Manufactures to Industrial CountriesChapter 15 Multinationals and Migration: International Factor MovementsForeign Direct InvestmentMultinational EnterprisesFDI: History and Current PatternsWhy Do Multinational Enterprises Exist?Taxation of Mul tinational Enterprises’ProfitsCase Study CEMEX: A Model Multinational from an Unusual PlaceMNEs and International TradeShould the Home Country Restrict FDI Outflows?Should the Host Country Restrict FDI Inflows?Focus on China China as a Host CountryMigrationHow Migration Affects Labor MarketsShould the Sending Country Restrict Emigration?Should the Receiving Country Restrict Immigration?Case Study Are Immigrants a Fiscal Burden?APPENDIXESA The Web and the Library: International Numbers and Other InformationB Deriving Production-Possibility CurvesC Offer CurvesD The Nationally Optimal Tariff周瑞琪. International Trade Practice. University of International Business and Economics press. 2011.9CONTENTSChapter One General Introduction（第一章导论）1.1 Reasons for International Trade （国际间贸易的起因）1.2 Differences between International Trade and Domestic Trade （国际贸易与国内贸易的差异）1.3 Classification of International Trade（国际贸易的分类）1.4 Export and Import Procedures（进出口贸易的程序）1.5 Overview of This Book （本书的基本内容）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Specimens（单证样本）Chapter Two International Trade Terms（第二章国际贸易术语）2.1 Three Sets of Rules （三种贸易术语的解释规则）2.2 Basics of Incoterms 2010 （2010年国际贸易术语解释通则基本概念）2.3 Application Issues（贸易术语在使用中应注意的问题）2.4 Determinants of Choice of Trade Terms （贸易术语选用的决定因素）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Chapter Three Export Price（第三章出口商品的价格）3.1 Expression of Export Price（出口价格的表达）3.2 Pricing Considerations（影响定价的因素）3.3 Calculation of Price（价格的计算）3.4 Understanding the Price（价格的评估）3.5 Communication of Price（价格的沟通）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Chapter Four Terms of Commodity（第四章商品条款）4.1 Name of Commodity （商品的名称）4.2 Specifying Quality（商品的品质）4.3 Measuring Quantity（商品的数量）4.4 Packing and Marking（商品的包装及标志）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Chapter Five Cargo Transportation（第五章国际货物运输）5.1 Ocean Transportation （海洋运输）5.2 Other Modes of Transportation （其他运输方式）5.3 Transportation Documents（运输单据）5.4 Shipment Clause in the Sales Contract（销售合同中的装运条款）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Specimens（单证样本）Chapter Six Cargo Transportation Insurance（第六章货物运输保险）6.1 Fundamental Principles of Cargo Insurance（货物保险的基本原则）6.2 Marine Risks and Losses（海上风险和损失）6.3 Coverage of Marine Cargo Insurance of CIC（我国海上货物保险范围）6.4 Coverage of Marine Cargo Insurance of ICC（协会货物保险范围）6.5 Other Types of Cargo Insurance（其他货物保险的种类）6.6 Procedures of Cargo Insurance（货物保险程序）6.7 Insurance Terms in the Sales Contract（销售合同中的保险条款）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Specimens（单证样本）Chapter Seven International Payments（第七章国际货款支付）7.1 Issues in Concern（影响支付条件的因素）7.2 Paying Instruments（支付工具）7.3 Remittance（汇付）7.4 Collection（托收）7.5 Basics of Letter of Credit（信用证基础知识）7.6 Types of Documentary Credit（跟单信用证的种类）7.7 Letter of Guarantee（L/G）（保函）7.8 Export Financing（出口融资）7.9 Payment Problems（支付中出现的问题）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Specimens（单证样本）Chapter Eight Export Documentation（第八章出口单证）8.1 Significance of Documentation（单证的重要性）8.2 Basic Requirements for Documentation（单证的基本要求）8.3 Prerequisites of Documentation（制单的依据）8.4 Export Documents（出口单证的种类）8.5 Clause Concerning Documents in the Sales Contract（销售合同中有关单证的条款）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Specimens（单证样本）Chapter Nine Inspection, Claim, Force Majeure and Arbitration（第九章商检、索赔、不可抗力和仲裁）9.1 Commodity Inspection（商品检验）9.2 Disputes and Claims（争议和索赔）9.3 Force Majeure（不可抗力）9.4 Arbitration（仲裁）Summary（总结）Key Terms（主要术语）Abbreviations（缩略语）Exercises（练习）Key to Exercises（练习答案）Glossary（词汇表）Appendix 1INCOTERMS 2010 （FOB, CFR, CIF）（附录12010年国际贸易术语解释通则（FOB，CFR，CIF））Appendix 2CISG 1980 （Part II）（附录2联合国国际货物销售合同公约1980（第二部分）) References （参考书目）帅建林. International Trade Practice. University of International Business and Economics press. 2007.9CONTENTSPart 1 OverviewChapter 1 Introduction to International TradeChapter 2 International Trade PolicyChapter 3 Trade Bloc and Trade BlockChapter 4 WTO :A Navigation GuidePart 2 Terms of International TradeChapter 5 International Trade TermsChapter Terms of CommodityChapter International Cargo TransportChapter 8 Cargo InsuranceChapter 9 Terms of PriceChapter 10 International Payment and SettlementChapter 11 Claims, Force Majeure and ArbitrationPart 3 International Trade ProcedureChapter 12 Launching a Profitable TransactionChapter 13 Business Negotiation and Establishment of ContractChapter 14 Exporting ElementsChapter 15 Importing ElementsChapter 16 DocumentationPart 4 Trade FormsChapter 17 Agency, Distribution and ConsignmentChapter 18 TendersChapter 19 Counter TradeChapter 20 Futures TradingChapter 21 E-CommerceAppendix Glossary of International Trade Terms with English-Chinese InterpretationsBibliographyPaul R.Krugman & Maurice Obstfeld. International Economics:Theory andPolicy,8E. Tsinghua University press. 2011-11Contents前言第1章绪论第1部分国际贸易理论第2章世界贸易：概览第3章劳动生产率和比较优势：李嘉图模型第4章资源、比较优势和收入分配第5章标准贸易模型第6章规模经济、不完全竞争和国际贸易第7章国际要素流动第2部分国际贸易政策第8章贸易政策工具第9章贸易政策中的政治经济学第10章发展中国家的贸易政策第11章贸易政策中的争论数学附录第4章附录要素比例模型第5章附录贸易下的世界经济第6章附录垄断竞争模模型张素芳，International trade: theory and practice. University of International Business & Economics Press, Beijing, 2010contentsSection I. International Trade Theory and PolicyCHAPTER 1.INTRODUCTION TO INTERNATIONAL TRADE1.The Reasons for International Trade1.1. Resources reasons1.2. Economic reasons1.3. Other reasons2. The Differences between International Trade and Domestic Trade'.'2.1. More plex context2.2. More difficult and risky2.3. Higher skills required3.Basic Concepts Relating to International Trade3.1. Visible trade and invisible trade3.2. Favorable balance of trade and unfavorable balance oft rade3.3. General trade system and special trade system3.4. Volume of international trade and quantum of international trade3.5. Commodity position of international trade3.6. Geographical position of international trade3.7. Degree of dependence on foreign tradeCHAPTER 2.CLASSICAL TRADE THEORIES1.Mercantilism1.1. The development of mercantilist thought1.2. The mercantilist economic system1.3. Economic policies pursued by the mercantilists1.4. Discussions2.David Hume's Challenge to Mercantilism2.1. Assumptions of price-specie=flow mechanism2.2. The price-specie-flow mechanism3.Adam Smith's Theory of Absolute Advantage3.1. Assumptions of Adam Smith's theory of absolute advantage3.2. Challenge to Mercantilism3.3. Example4.David Ricardo's Theory of Comparative Advantage4.1. The concept of parative advantage4.2. Example4.3. Analysis of the theory of parative advantage by using modemtools. CHAPTER 3.NEOCLASSICAL TRADE THEORIES.1.Gains from Trade in Neoclassical Trade Theory1.1. Increasing opportunity costs on the PPF1.2. General equilibrium and gains in autarky1.3. General equilibrium and gains after the introduction of international trade ...2.Reciprocal Demand Theory2.1. A country's offer curve2.2. Trading equilibrium2.3. Measurement of terms of trade3.Factor Endowment Theory3.1. Factor intensity in production3.2. Factor endowments, factor prices, and parative advantage3.3. Assumptions of the factor proportions theory.,3.4. The Heckscher-Ohlin theorem.:3.5. An example to illustrate H-O theorem.3.6. The factor price equalization theorem:3.7. The Stolper-Samuelson theorem4.The Leontief Paradox——An Empirical Test of the Factor Proportions Theory 4.1. The Leontief paradox.-4.2. Suggested explanations for the Leontief Paradox and related theories CHAPTER 4.POST-HECKSHER-OHLIN THEORIES OF TRADE1.The Product Cycle Theory1.1. The imitation lag hypothesis1.2. The product cycle theory2.The Linder Theory2.1. Assumptions of the Linder theory2.2. Trade es in the overlapping ranges of products ophistication.:3.Intra-Industry Trade Theory3.1. Explanations of intra-industry trade3.2. Measurement of intra-industry tradeCHAPTER 5.IMPORT PROTECTION POLICY: TARIFFS1.Types of Import Tariffs1.1. In terms of the means of collection1.2. In terms of the different tariff rates applied1.3. In terms of special purposes for collection2.The Effects of Import Tariffs2.1. Concepts of consumer surplus and producer surplus2.2. The welfare effects of import tariffs3.Measurement of Import Tariffs3.1. The 'height' of import tariffs3.2. Nominal versus effective tariff ratesCHAPTER 6.IMPORT PROTECTION POLICY: NON-TARIFF BARRIERS''1.Forms of Non-tariff Barriers.1.1. Quantity control measures1.2. Price control measures1.3. Para-tariff measures1.4. Finance measures1.5. Anti-petitive measures.,.1.6. Miscellaneous measures2.Effects of Non-tariff Barriers2.1. The effects of an import quota2.2. The effects of a subsidy to an import-peting industryCHAPTER 7.EXPORT PROMOTION AND OTHER POLICIES1.Export Subsidy and Production Subsidy1.1. Export subsidy and its effects1.2. Production subsidy and its effects.2.Other Export Promotion Policies2.1. Devaluation of home currency.2.2. Commodity dumping2.3. Bonded warehouse2.4. Special trade zone2.5. Export promotion programs3.Export Restrictions and Import Promotion Policies3.1. Export restrictions policies3.2. Import promotion policies4.Trade Sanctions4.1. Introduction to trade sanctions4.2. Effectiveness of trade sanctionsCHAPTER 8.ARGUMENTS AGAINST FREE TRADE1.Traditional Arguments against Free Trade1.1. Infant industry argument.1.2. Terms of trade argument1.3. Balance of trade argument1.4. Tariff to reduce aggregate unemployment argument1.5. Fair petition argument1.6. National security argument2.New Protectionism2.1. Tariff to extract foreign monopoly profit2.2. Export subsidy in duopoly3.The Political Economy of Trade Policy3.1. Median voter model3.2. Collective action theory.3.3. Contribution in political campaignsCHAPTER 9.REGIONAL ECONOMIC INTEGRATIONof Regional Economic Integration1.1. Preferential tariff arrangement1.2. Free trade area1.3. Customs union1.4. Common market.1.5. Economic union2.The Static and Dynamic Effects of Regional Economic Integration2.1. Static effects of regional economic integration2.2. Dynamic effects of regional economic integration3.Economic Integration in Europe, North America and Asia3.1. Economic integration in Europe……………………………………Chapter 10 International Cargo Transportation InsuranceChapter 11 International Trade PaymentChapter 12 Inspection,Claim,Force Majeure and ArbitrationChapter 13 Trade Negotiation and Formation of the ContractChapter 14 Implementation of the Contract丹尼斯·R·阿普尔亚德 & 小艾尔弗雷德·J·菲尔德 & 史蒂文·L·科布.国际贸易.中国人民大学出版社. 2012-7第1章国际经济学的世界第一部分古典贸易理论第2章早期的国际贸易理论：由重商主义向大卫·李嘉图的古典贸易理论的演进第3章大卫·李嘉图的古典贸易理论和比较优势第4章对古典贸易模型的扩充及验证第二部分新贸易理论第5章新古典贸易理论——基本分析工具的介绍第6章新古典贸易理论中的贸易利得第7章贸易提供曲线和贸易条件第8章贸易的基础：要素禀赋理论和赫克歇尔俄林模型第9章要素禀赋理论的实证分析第三部分贸易理论的扩展第10章后赫克歇尔俄林贸易理论与产业内贸易第11章经济增长与国际贸易第12章国际要素流动第四部分贸易政策第13章贸易政策工具第14章贸易政策的影响第15章对干涉主义贸易政策的争论第16章经济的政治因素与美国的对外贸易政策第17章经济一体化第18章国际贸易与发展中国家参考文献当我被上帝造出来时，上帝问我想在人间当一个怎样的人，我不假思索的说，我要做一个伟大的世人皆知的人。

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CHAPTER 16 MONOPOLISTIC COMPETITION ( pg 363 ) (1)Sleek Sneakers Co. is one of many firms in the market for shoes. a. Assumes that Sleek is currently earning short-run economic profits. On a correctly labelled diagram, show Sleek’s profit-maximizing output and price, as well as the area representing profit.

ANSWER: PRICE (RM) MC ATC

5 B e AR=DD PROFIT

MR 0 20 QUANTITY (UNIT)

PRICE = RM10 ‘ OUTPUT = 20 UNITS

TR = PRICE (P) X QUANTITIES (Q) TC = RM 5 X20 = RM10 X 20 UNITS = RM100 =RM200

PROFIT = TR – TC =RM200 – RM100 = RM100

 The area of the highlighted box is the profit of Sleek company. b. What happens to Sleek’s price, output, and profit in the long run? Explain this change in words, and show it on a new diagram.

ANSWER: PRICE (RM) MC

ATC

E0 E1 AR0=D0D0

AR1=D1D1 MR1 MR0

15 20 QUANTITY (UNIT)

8 5 BM Apabila Sleek mendapat untung lebih normal dalam jangka pendek,firma baru akan masuk ke pasaran. Sebahagian daripada pelanggan sedia ada akan membeli firma baru tersebut. Oleh itu, Sleek akan mengalami kekurangan pelanggan dan keluk permintaan firma tersebut akan mengalih ke kiri dari AR0=D0D0 dan MR0 ke AR1D1D1 dan MR1 sehingga mendapat untung normal dalam jangka panjang.

Diagram atas menunjukkan penyesuaian untung lebih normal kepada untung normal dalam jangka panjang kesan kemasukan firma baru ke pasaran.

(a) Dalam jangka pendek, keseimbangan dicapai apabila kos sut sama dengan hasil sut (MC = MR0) pada titik E0. Pada titik E0, kuantiti output ialah 20 unit dan harga ialah RM10. Sleek mendapat untung lebih normal sebanyak RM100 (TR(RM200) – TC(RM100)).

(b) Untung lebih normal yang dinikmati Sleek sedia ada akan menarik firma baru masuk ke pasaran lalu menyebabkan keluk permintaan dan keluk hasil sut Sleek beralih ke kiri dari AR0 = D0D0 dan MR0 ke AR1 = D1D1 dan MR1.

(c) Dalam jangka masaa panjang, keseimbangan baru dicapai apabila kos sut sama dengan hasil sut (MC = MR1) pada titik E1. Pada titik E1, kuantiti output ialah 15 unit dan harga ialah RM8. Jumlah hasil adalah sama dengan jumlah kos, iaitu RM 120.

Oleh itu, dalam jangka panjang, Sleek akan mendapat untung normal dan tiada firma baru akan masuk ke pasaran. BI When firms in monopolistically competitive market gain super normal profit in the short term, new firms will enter the market. Some of our existing customers will buy the new firm. Thus, firms that have supernormal profits would suffer a lack of customers and the firm demand curve will shift to the left from AR0= D0D0 and MR0 to AR1D1D1 and MR1 until all firms in monopolistically competitive market make normal profits market in long-term .

Diagram above shows the adjustment of Sleek from supernormal profit to normal profit in the long term because of the entry of new firms into the market

. (A) In the short term, the equilibrium reached when marginal costs equal marginal revenue (MC = MR0) at point E0. At the point E0, the quantity of output is 20 units and the price is RM10. Sleek have supernormal profit of RM100 (TR (RM200) - TC (RM100)).

(B) The supernormal profits enjoyed by Sleek will attract new firms into the market and cause the demand curve and marginal revenue curves shift to the left from AR0 = D0D0 and MR0 to AR1 = D1D1 and MR1.

(C) In the long term, the new equilibrium reached when marginal costs equal marginal revenue (MC = MR1) at point E1. At point E1, the quantity of output is 15 units and the price is RM8. Total revenue is same to the total cost , that is RM 120.

Thus, in the long term, Sleek will make normal profits and no new firms will enter the market. c. Suppose that over time consumers become more focused on stylistic differences among shoe brands. How would this change in attitudes affect each firm’s price elasticity of demand? Sleek’s price, output, and profits? In the long run, how will this change in demand affect?

When the consumer become more focused on stylistic differences among shoe brands, Sleek will use the advertisement to set his or her product apart from the competition.Advertising is common with differentiated consumer products, and much less common with homogeneous goods. Buyers are willing to pay more for the shoes because they view the shoes as being more different than the otherwise would.

If so, it would make markets less competitive and Sleek’s demand curves more elastic, and this would lead firms to charge higher prices. But, advertising might make easier for customer to find the Sleek offering the best price, in this case, it would make markets more competitive and firm’s demand curves more elastic, which would lead to lower price, so, the output and the profit will increase. In the long run, the demand of the will decrease, Advertising by all firms might decrease the demand for any one firm’s product and also demand of Sleek’s shoes, so the demand curves of Sleek’s shoes become more elastic.