• 1
  • Monopolistic competition is a market in which _______ firms produce _______ goods and services.

    many; identical
    few; differentiated
    many; differentiated
    few; identical

  • 2
  • The Netscape and Explorer browsers are an example of ___________________.

    perfectly competitive industries
    identical products
    product differentiation
    monopoly industries

  • 3
  • A monopolistically competitive firm can increase its economic profit by _________.

    advertising less
    eliminating excess capacity
    producing at the efficient quantity
    developing new products

  • 4
  • Selling costs of a monopolistically competitive firm are _____________.

    greater than a monopoly but less than a competitive firm
    the same as a competitive firm
    greater than a competitive firm or a monopoly
    the same as a monopoly

  • 5
  • A market structure in which a small number of firms compete is called _________.

    a monopoly
    oligopolistic competition
    an oligopoly
    monopolistic competition

  • 6
  • In game theory, strategies include _________________.

    all possible actions and payoffs of each player
    the payoff matrix
    all possible actions of each player
    the winning action of each player

  • 7
  • A table that shows the payoffs for every possible action by each player for every possible action by the other player is called the ______________.

    strategy matrix
    strategy table
    payoff matrix
    game matrix

  • 8
  • When each player takes the best possible action given the action of his opponent, _______________.

    both players deny
    a competitive equilibrium is reached
    a Nash equilibrium is reached
    one player denies and one player confesses

  • 9
  • The outcome of a prisoners' dilemma game is a dominant strategy equilibrium in which ________________.

    both players win
    there is no equilibrium
    both players lose
    one player wins and one player loses

  • 10
  • A duopoly occurs when _____________ ________________.

    one producer of two goods sells the goods in a monopoly market
    numerous producers of two goods compete in a competitive market
    two producers of a particular good compete in the same market
    two producers of two goods compete in an oligopoly market

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