A market situation in which a large number of firms produce similar but not identical products is
A. an oligopoly.
B. a monopoly.
C. monopolistic competition.
D. perfect competition.
Answer: C
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
If Macrosoft and Apricot make their decision at the same time, then which of the following statements is correct?
A. The game has more than one Nash equilibrium. B. The game does not have a Nash equilibrium. C. The only Nash equilibrium is that both develop a touch-screen t-shirt. D. The only Nash equilibrium is that neither develops a touch-screen t-shirt.
Suppose that TC = $550, TVC = $500, and MC = $100. If the firm produces 10 units of output, then
A. MC > AVC. B. AVC > MC. C. AVC = MC. D. AFC = AVC.
In perfect competition, the elasticity of demand for the product of a single firm is
A) 0. B) between 0 and 1. C) 1. D) infinite.
An economic forecast will always yield an accurate forecast
Indicate whether the statement is true or false