QUESTION 1 : Select all that are true regarding market structure:

A. Market structure only applies to the input market

B. Perfect competition has no barriers to entry or exit (i.e. fixed costs)

C. Duopolies have pricing power if they coordinate their output supplies

D. Monopsony (i.e. a single buyer) shifts pricing power to suppliers in the input market

E. Monopolistic competition is a monopoly given by demanders' inelasticity in price

F. Profits to a firm or firms that limit supply quantity are a form of economic rent

G. Monopolies can only exist if consumers are inelastic in their demand (low pricing power)

QUESTION 2. Please select all that are true regarding indifference curves:

A. Maximizing utility is done by changing the quantities consumed until the marginal utility per dollar is the same for all goods.

B. The highest utility achievable occurs closest to the origin.

C. Straight line (linear) indifference curves are for unrelated goods

D. Indifference curves that cross means that they are indifferent between different levels of utility

E. An indifference curve show the consumption bundles of goods that provide the same level of utility (happiness)

F. Lower indifference curves have decreasing levels of utility since the represent decreasing total consumption of the goods