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Matching Quiz
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Match the terms on the left with the definition in the column on the right


Match:
1


intra-industry trade (IIT)

2


product differentiation

3


economies of scale

4


internal scale economies

5


external scale economies

6


monopolistic competition

7


oligopoly

8


monopoly

9


net trade

10


constant returns to scale

A)a market that has only one firm.
B)the value of the difference between exports and imports for a product.
C)assuming both long-run adjustments of all factor inputs and constant factor input prices, average cost (or unit cost) does not change when the quantity of output changes.
D)when consumers view the products of different firms as close but not perfect substitutes for one another.
E)A market in which there are a small number of firms and those firms can affect the product price.
F)exist if increasing expenditures on all inputs increase the output quantity by a larger percentage so that the average cost of producing each unit of output declines.
G)when the average cost of every firm in an industry declines as the output of the industry increases.
H)a market that has many firms which each sell a differentiated product.
I)when the expansion of the size of the firm is the basis for the decline in its average cost.
J)two-way trade within industries.







Pugel:International EconomicsOnline Learning Center

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