4.(3%) True or False: Full information is not required to achieve perfect competition.
(A)O
(B)X

14. (5%) Which of the following statement(s) is true? (A)Announcing a price change in January on December 9 shifts current demand to the left.(B)Announcing a price change in January on December 9 cause current shortage due to price control. (C) Implementing a new price and increasing the amount expropriated after New Year's weekend shifts both demand and supply to the right, so equilibrium quantity increases.(D) After the long weekend of New Year's Day, supply shifts in a magnitude larger than demand. (E)None of the above.

1.(3%) True or False: Perfect competition requires perfect substitutes.(A)O(B)X

2.(3%) True or False: Free entry and exit causes firms to earn zero profit in the long run.(A)O(B)X

3.(3%) True or False: Under perfect competition, demand and supply are both perfectly elastic.(A)O(B)X

5. (3%) True or False: Externalities cause inefficiency only because of incomplete markets. If markets were complete, there would be no market failure.(A)O(B)X

6. (3%) True or False: Allocation of common resources and public goods are inefficient only because property rights are not well defined, If property rights are well defined, markets of these goods would be efficient.(A)O(B)X

7.(3%) True or False: Natural monopoly is not a monopoly.(A)O(B)X

8.(3%) True or False: Most markets in reality are best described as monopolistic competition.(A)O(B)X

9.(3%) True or False: The Bertrand Nash equilibrium outcome is an example of perfect competition.(A)O(B)X

10. (3%) True or False: Market competition can fix discrimination by firms, but not discrimination by consumers.(A)O(B)X