I. Write "True" if the statement is correct or 'False" if it is incorrect on the space provided __ -1. The oligopolistic firms are aware of their interdepend ence and always consider thei rivals' reaction when setting prices, output goals advertising budgets and other business policies. __ 2.The firm's demand curve as perceived by a monopoly is the same as the market demand curve. __ -3.The most important variable that determines the long-run equilibrium of monopoly markets is the adjustment to the number of firms in the market. __ 4.Monopolist ic competitive market involves many firms which are competing against each other but selling products that are distinctive in some way. __ 5.A firm will exit a market if the revenue it gets less than its total cost. II. Choose the correc I answer and write the lettel of your choice on the space provided. __ 6. Which of the following statements about oligopoly is false? A. Undel conditions of oligopoly entry into the market is difficult. B. Each firm in an oligopoly makes decisions without regard for the actions of other firms. C. Game theory is used to analyze the behavior of firms in an oligopoly. D. Firms in an oligopolistic market ofter I have an incentive to collude. __ 7. Which of the following is a unique characteristic of oligopoly? A. production of a standardized product C. mutual interdependence among firms in the industry B. the use of advertising and product development D. the existence of barriers to entry including patents and copyrights __ 8. Under conditions of oligopoly firms may collude in order to: A. avoid the outcome associated with uncertainty of the other firm's reaction __ 9. Which of the following is not a characteristic of perfect competition? A. A large number of buyers and sellers C uniform price B. the existence of only zero profit in the short run D. the absence of transparen t cost __ 9. Product differentiatior I is a typical feature of: A. oligopoly B monopoly C.pure competition D.monopolistic competition __ 10. A monopol y is less preferable to perfectly competitive market because: A. Without competitior there is no pressure on the firm to be efficient. B. Under certain circumstance s different consumers are charged I different prices for the same product or services. C. The market price under monopoly is greater than the marginal cost of additional output. D. All of the above. __ 11. In a perfectly competitive market, the firm is in the long-run equilibrium when: A. MR=ATC=MC=P.C . Price is stable. B. The price is greater than the average cost. D.None of the above __ 12. A profit-maximizin g monopolist: A. Follows the same rules for profit maximizatior I as the perfectly competitive firm. B. Will set price equal to marginal cost in order to determine the maximizing output. C. Will set marginal cost equal to average revenue in order to determine the maximizing output. D. None of the above. __ -13. Price discriminatior by a monopolis t can only be beneficial to it if: A. Advertising costs do not rise. B. Price elasticity of demand is the different in both markets. C. It creates a barrier to entry. D. Consumers can move freely from one market to another. __ 14. If the marginal cost of a firm is rising and greater than its marginal revenue, the firm should: A. shut down in the short run B increase output to increase revenue and profit C. remain at the same level of output since any change would lead to larger losses D. decrease output