1.What will happen to allocation of inputs in the factor market?

a.Resources will become scarce

b.Resources will move to the production of face masks

c.Substitutes for face-masks will experience increased production

d.Any of the above

2.A typical example of an oligopolistic industry is the aviation industry. If AirCanada, WestJet, AirTransat and Sunwing are the airlines registered in Canada and they fly to cities in Canada, Americas (North, South and Central), Europe, and Asia. Do you think there is price rigidity in this market?

a.There is no rigidity in the market

b.There is rigidity as explained by the Sweezy model - increase/decrease in price is not competitive

c.There is rigidity as explained by Edgeworth model - increase/decrease in price is not competitive

d.There is tacit collusion in the airline industry

please select one option of each questions