When a business advertises that its product has unique features that make it superior to other similar products, it is engaging in
A. Price competition.
B. Product differentiation.
C. Predatory pricing.
D. Contestable market advertising.
Answer: B
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce ________ units per month and charge ________ per unit.
A. 4,000; $2 B. 3,000; $1 C. 1,000; $3 D. 2,000; $2
If a brewery wants to raise funds to purchase a new fermenting vat, it does so in the
A) alcoholic beverages market. B) output market. C) factor market. D) product market.
Perfect competition displays the market mechanism at its best in many respects, yet most markets in operation today are monopolistic or oligopolistic, composed of a few large firms. Should government regulation break up those large firms into several smaller firms to try to achieve perfect competition? Why or why not?
What will be an ideal response?
In the diagram below, the following would be a possible explanation for the difference between PPF1 and PPF2. (Assume the starting point is with all butter and no guns.) 
A. A dramatic shock to the resources needed to produce butter. B. A technological improvement in the production of butter and guns. C. A technological improvement in the production of butter. D. A technological improvement in the production of guns.