True or False:
1. Under oligopoly, individual firms produce only an infinitesimal share of total output.
2. The auto industry is an example of oligopoly.
3. Under oligopoly, as in perfect competition and monopolistic competition, firms cannot earn economic profits in the long run.
4. When firms in an oligopolistic industry collude, in the long run they fail to maximize social welfare.
5. When firms collude to set prices, their individual demand curves become relatively more elastic.
6. Although they are difficult to establish, most collusive oligopolies last indefinitely.
7. The new diamond industry in northern Canada will not threaten the economic profits earned by members of the international diamond cartel.