QUESTION 3

1. When firms decide to collude, no firm has an incentive todeviate from the deal.

   True

   False

QUESTION 4

1. When firms decide to collude, they are in effect agreeing to actas a monopolist.

   True

   False

QUESTION 5

1. The monopolist outcome results in less output and lessefficiency than the Cournot outcome.

   True

   False

  

QUESTION 6

1. The perfectly competitive outcome results in more output andless efficiency than the monopolist outcome.

   True

   False