1. Which of the following characteristics most distinguishes an oligopoly industry from the other three types of market structures?

Select one:

a.Mutual interdependence.

b.Control of price by individual firms.

c.Difficult entry.

d.The possibility of differentiated products.

2."Economics deals with using scarce productive resources efficiently in order to satisfy society's unlimited material wants." This statement is:

Select one:

a.positive, but incorrect.

b.positive and correct.

c.normative and correct.

d.normative, but incorrect.

3.The deadweight loss arising from the monopolization of a perfectly competitive industry is:

Select one:

a.the reduction in quantity supplied and the increase in product price.

b.the gain in producer's surplus minus the loss in consumer's surplus.

c.the transfer of consumer's surplus to the monopolist in the form of economic profit.

d.the net reduction in both consumer's and producer's surplus which is not captured by anyone.

4.Marginal cost is the cost of purchasing an additional input

Select one:

True

False