Under perfect competition,
a. a single seller sets the price
b. sellers can easily enter or exit the market
c. a small number of sellers offer differentiated products
d. a government franchise protects sellers
e. an intense rivalry between two powerful firms determines the market price
B
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In the short run, all costs are fixed
a. True b. False
When society overallocates resources to a product it means that the:
A. marginal benefit is less than the marginal cost. B. opportunity cost of the product is decreasing. C. investment in the product is declining. D. marginal benefit is greater than the marginal cost.
Dollar bills in the modern economy serve as money because
A) they are backed by the gold stored in Fort Knox. B) they can be redeemed for gold by the central bank. C) they have value as a commodity independent of their use as money. D) people have confidence that others will accept them as money.
The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A. did not publish coupons. B. chooses either strategy because Column Cafe will have the same profit in either case. C. also published coupons. D. only offered coupons half of the time.