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Questions and Answers
Qu'est-ce que le coût marginal?
Quel est le modèle qui suppose que chaque entreprise peut différencier son produit de ses concurrents?
Qu'est-ce que le coût marginal ?
Quel est le résultat de l'augmentation du nombre d'entreprises sur le marché de la concurrence monopolistique?
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Qu'est-ce qui rend les grandes entreprises plus efficaces ?
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Quel modèle suppose que chaque entreprise peut différencier son produit de ses concurrents?
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Qu'est-ce que l'IDE Brownfield?
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Qu'est-ce que l'IDE Greenfield?
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Comment les monopoles peuvent-ils maximiser leurs bénéfices ?
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Que peuvent générer les monopoles ?
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Que suppose le modèle de concurrence monopolistique ?
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Que se passe-t-il avec les entreprises en concurrence monopolistique lorsque la demande augmente et que les prix des concurrents augmentent ?
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Comment est représentée la fonction de demande ?
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Que devraient faire les entreprises symétriques ?
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Comment peut-on décrire l'état de l'industrie ?
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Comment peut-on déterminer le comportement de l'industrie ?
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Study Notes
- The cost of production for an additional unit is the marginal cost.
- Large companies are more efficient due to internal economies of scale.
- Monopolies can maximize profits by setting the marginal revenue equal to the marginal cost.
- Monopolies can generate monopoly profits.
- The concurrence monopolistique model assumes that each company can differentiate its product from its competitors.
- Companies in concurrence monopolistique sell more as demand increases and prices of rivals increase.
- The function of demand is represented by Q = S - n(P - b).
- Symmetric companies should charge the same price and serve an equal portion of the market.
- The state of the industry can be described by the number of companies and the average price they charge.
- The number of companies and the average price they charge can be used to determine how the industry will behave.
- The number of firms and prices in a monopolistically competitive market are determined by two relationships.
- More firms on the market result in stronger competition and lower prices.
- More firms lead to lower quantities sold by each and higher average costs.
- Profitable industries attract new firms while unprofitable industries lose firms.
- Equilibrium price and number of firms are determined by the intersection of the PP and CC curves.
- Paul Krugman is an American economist and Nobel Prize winner.
- Krugman's model of increasing returns, monopolistic competition, and international trade predicts that trade lowers costs in a monopolistically competitive industry.
- The relationship between price and number of firms remains the same with trade.
- Larger markets allow for greater production and lower prices.
- Integration in the automotive industry leads to lower prices and benefits for consumers and producers.
- In the 1970s, the Canadian automotive industry was comparable to the American industry in terms of productivity.
- The transformation of the industry was extended to Mexico with the implementation of NAFTA.
- The manufacturing of automotive parts was also consolidated across the North American market.
- Trade of automotive parts between the US and Mexico more than doubled in both directions during the first decade after NAFTA.
- Concerns about relocation of assembly plants from the US to Mexico rarely mention the strong growth of US exports of automobiles and parts to Mexico.
- The end of NAFTA would likely not result in an increase in automobile production in the US.
- The most profitable firms are those with the lowest marginal cost.
- Opening of trade increases market size but also intensifies competition.
- Most US manufacturing firms do not declare any export activity.
- Commercial costs significantly reduce the number of firms that sell to foreign consumers.
- Taxes are imposed on various products imported from China.
- These taxes can range from 78% for color TVs to 330% for saccharine.
- Chinese firms' costs have been distorted by subsidized loans, state-regulated markets, and controlled yuan.
- Foreign direct investment refers to investment where a company from one country controls or owns a subsidiary in another country.
- IDE Greenfield is when a company builds a new production facility abroad, while IDE Brownfield is when a domestic company acquires a majority stake in a foreign company.
- Developed countries have been the biggest recipients of incoming IDEs.
- The proportion of IDEs towards developing and transitioning countries has increased over time.
- China and India are among the top investing countries.
- Sales of the top 100 multinationals in the world amounted to 10.7% of global GDP in 2015.
- Other measures of multinational presence include sales, value added, and employment.
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Description
Test your knowledge on important economic concepts and models with this quiz! From understanding the behavior of monopolies to analyzing the effects of trade on industries, this quiz challenges you to think critically about various economic topics. Sharpen your skills in identifying the relationships between the number of firms, prices, and profits in competitive markets, as well as the impact of taxes and foreign direct investment on global markets. Whether you are an economics student or simply interested in the subject, this quiz is a great opportunity to learn and
