"Complete the following two questions while analyzing an automobile industry (oligopoly). Add references to support your arguments if needed." Question 1: Explain if the long-run outcome in the automobile industry is efficient or not and why. Include the two types of efficiency: productive efficiency and allocative efficiency in your explanation. Given below is an answer made by "Samuel", however, his answer is wrong. Complete the question completely, and then explain where Samuel made his mistakes.

Samuel's Answer: The long-run outcome in the automobile industry is efficient. The industry is characterized by high barriers to entry, which protect existing firms from new entrants. The high barriers to entry allow firms to charge higher prices and earn higher profits in the long run. This leads to efficient production in the industry and allocates resources to their most efficient use. The high barriers to entry in the automobile industry protect existing firms from new entrants. The high barriers to entry allow firms to charge higher prices and earn higher profits in the long run. This leads to efficient production in the industry and allocates resources to their most efficient use. The reason for this is that the high barriers to entry make it difficult for new firms to enter the market. The high initial investment required to set up an automobile manufacturing plant is a significant barrier to entry. Other barriers include the need for a large workforce and access to raw materials. Question 2: Explain the concept of deadweight loss and mention if there is deadweight loss in the automobile industry or not. Given below is an answer made by "Chandler", however, his answer is wrong. Complete the question completely, and then explain where Chandler made his mistakes. Chandler's Answer: There is no deadweight loss in the automobile industry. The industry is characterized by high barriers to entry, which protect existing firms from new entrants. The high barriers to entry allow firms to charge higher prices and earn higher profits in the long run. This leads to efficient production in the industry and allocates resources to their most efficient use. There is no deadweight loss because there is no waste in the production process and all resources are used efficiently. The high barriers to entry in the automobile industry protect existing firms from new entrants. The high barriers to entry allow firms to charge higher prices and earn higher profits in the long run. This leads to efficient production in the industry and allocates resources to their most efficient use. There is no deadweight loss because there is no waste in the production process and all resources are used efficiently. The reason for this is that the high barriers to entry make it difficult for new firms to enter the market. The high initial investment required to set up an automobile manufacturing plant is a significant barrier to entry. Other barriers include the need for a large workforce and access to raw materials.