Microecon help please!?

Question

true/false

T F 1. The perfect competitor is forced to rely on price competition (offering the product for less) while the monopolistic competitor is able to use nonprice competition (advertising, packaging, etc.) to attract customers.

T F 2. Firms operating in a monopolistically competitive market have a monopoly over their variation of the product, but face a lot of competition from other firms with very similar products.

T F 3. The key characteristic of the oligopolistic market is the extremely large size of the firms involved.

T F 4. If the Exxon station on the NE corner of the intersection expects the Texaco station on the SE corner to copy a price decrease but ignore a price increase, then Exxon in that market faces a kinked Demand curve and the price probably won't change much.

T F 5. To the great disadvantage of consumers, cartels are relatively easy to establish and maintain.

Answer 1

1. False, perfect competitor cannot use price compettion due to close competition.  They use advertising, packaging, etc. to gain market share.

2. True.

3. False, the key characteristic is a small number of firms dominating the market.

4. True.

5. False, government regualtion is used to break up cartels (at least in industrialized countries)

6. True

7. True

8. True

9. True

10.  Need a definition of social regulation.