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

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

The Netscape and Explorer browsers are an example of ___________________.

perfectly competitive industries
identical products
product differentiation
monopoly industries

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

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

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

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

a monopoly
oligopolistic competition
an oligopoly
monopolistic competition

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

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

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

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

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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