1.The price in a competitive market, without any inefficiencies, maximizes the gains from trade, because ____.

A. No other single price can provide as much surplus to producers

B. No other single price can provide as much surplus to consumers

C. No other single price can allow as many quantities to be exchanged

D. Only A and B

3. The equation for the demand curve is P = 309 - (2)Q. If the price drops from ____ to ____, then the quantity effect is ____, while the price effect is ____.

a. $22, $17, 10, -141

b. $17, $16, 8, -146

c. $17, $16, 10, 141

d. $22, $16, 13, -131

4. A lack of competition among firms usually results in a dead-weight loss. True or false?

5. If the only two firms in an industry agree to fix the price at a given level, this is an example of:

A. price leadership.

B. satisfying.

C. collusion.

D. price extortion.

6. A market where there are a few dominant firms is one in which there is a lack of competition and economic efficiency. True or false?

7. is when there are two dominant firms in a market, each with market power.

A. A duopoly

B.A monopoly

C. A dichotomy

D. A biopoly

8. If there are two gas stations in the town of Smalltown, then the gasoline industry in Smalltown is probably best characterized as:

A. monopolistic competitive.

B. monopolistic.

C. perfect competitive.

D. oligopolistic.

9. The monopolist will maximize profit if they produce 300 units and charge $20. True or false?