1.The four types of market structures we study in economics are perfect competition, monopoly, oligopoly, and monopsony. True False 2. The long run is considered to be the period when a firm's inputs are mainly variable and at least one input is fixed. True False 3.The government regulates a pure monopoly by setting price where AVC (average variable costs) = D (demand). True False 4.Monopolies, since no close substitutes nor competitors exist, can price whatever they want and still maximize total revenues. True False 5.As competition increases in markets, the demand curve for products becomes more price elastic and downward pressure on prices tends to ensue. True False 6. As an imperfect competitor produces more and more output, we can assume that eventually marginal costs will continue to rise and marginal revenues to fall. TRUE FALSE 7. Generally speaking, consumer surplus will be highest in a perfectly competitive market structure. True False 8.The point where imperfect competitors will price their products and earn the highest level of total revenues is at the midpoint of the demand curve where total revenues are highest on the total revenue curve. True False In general, we can expect higher barriers of entry for a monopolistically competitive market structure than an oligopoly market structure. True False 10. Monopolistic competition would represent the market structure within which Coca-Cola and Pepsi Cola firms operate. True False 11. The perfect competitor can produce as much as it wants or as little as it wants with no effects on market price whatsoever. True False 12. Oligopolies and monopolies attempt reduce output and raise price, thereby incurring overcapacity and waste to society. True False 13.Redistribution of income from wealthier individuals to lower-income individuals by government in the form of higher taxes and progressive tax systems actually tends to lower prosperity because it weakens the link between productive activity and the reward derived from it, encourages resources to flow into wasteful rent-seeking activities, as well as higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities. True False 14. Decreasing the percentage tariff price on an imported good will result in greater market share for the foreign producer in the domestic country. True False 15.Which market structure can earn long-run economic profits? a. Perfect competition b. Monopolistic competition c. Oligopoly d. Monopoly e. c and d only 16. All firms produce where a. short-run profits are less than long-run profits b. average total costs are greater than marginal costs c. marginal revenues are greater than or equal to marginal costs d. marginal benefits are greater than marginal profits 17. A perfect competitor is a __________ and can earn economic profits ____________. a. price maker, never b..