Answer questions 10 through 18 and list the answer as it's letter or true or false.

10. If we want to understand the major portion of today's economic activity in an industrial economy, we should look at perfect competition and pure monopoly b. perfect competition and oligopoly C. oligopoly and monopolistic competition monopolistic competition and monopoly 11. A competitive market for a public good will not produce the allocatingly efficient level of output (i.c., Qso) because of the free rider effect. True or False? 12. If the demand curve of a competitive firm is tangent to (i.e., just touches) the low point on the AVC curve, the firm's profits are the same whether it shuts down or produces. True or False? 13. Monopolistic competition is common in a. retail selling farming C. basic manufacturing A ! electric power generation 14. In the short-run, total costs are not zero when output is zero because a. marginal costs can be negative at small outputs there are some costs that must be paid regardless of the level of output profits must be paid to stockholders (a) and (b) above are both correct 15. Wendy can sell six motor homes per week at $20,000 each. If she limits her sales to five homes per week, she can get $22,000 each. Thus, her MR is a equal to her total profits greater than her price C. less than her price equal to her price 16. One reason economists object to monopoly is a. monopolies produce above the allocatingly efficient (i.e., Qso) level monopolies have no supply curve monopolists are polluters monopolists produce below the allocationy efficient (i.e., Qso) level 17. Oligopoly occurs when a. a few firms sell to a few large buyers many firms dominate a single market C. a few firms dominate a single market many firms sell differentiated products 18. An oligopolist cares very much what other firms in his industry are doing. True or False? 2