It is important to understand oligopoly markets because:
a. although few real world markets are oligopolies, their existence raises interesting theoretical questions.
b. oligopolies typically generate more deadweight loss than monopolies.
c. oligopolies can generate a whole range of possible outcomes between monopoly and perfect competition.
d. one can predict the market outcome exactly just by knowing the number of firms in the market.
Question 2
The social discount rate used in cost-benefit analysis is equal to a weighted average of the Treasury Bill rate and the long-term government borrowing rate.
a. true
b. false
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