One of the following is not a characteristic of perfect competition. Which is it?
A. Firms advertise to increase their market share.
B. Profits are low in the long run.
C. Consumers pay little attention to brand names.
D. Firms pay no attention to their competitors’ output levels.
Answer: A
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Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $200 B. $150 C. $100 D. $75
Which of the following is a name for when a bank promises to lend funds to a borrower to pay off its commercial paper?
A) loan commitment B) standby letter of credit C) securitization D) loan sale
A period of sustained growth in output in an economy is referred to as a(n) _____
a. expansion b. contraction c. peak d. trough e. recession
Which of the following is NOT a type of integration?
A. Mega mergers B. Vertical mergers C. Conglomerate merger D. Horizontal mergers