In the fast food industry, there are many firms producing a differentiated product. This is an example of which market structure?
What will be an ideal response?
monopolistic competition
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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
Firm A's dominant strategy is to ________, and Firm B's dominant strategy is to ________.
A. not invest; not invest B. invest; not invest C. invest; invest D. not invest; invest
Which of the following is true for the economy depicted in Figure 9-2?
a. potential output equals y1 b. it would be impossible for this economy to achieve an output greater than y1 c. when output y1 is achieved, the actual rate of unemployment will exceed the natural rate of unemployment d. when output y1 is achieved, the actual rate of unemployment will be less than the natural rate of unemployment
Special economic zones in China have been
A) the same as export processing zones. B) centers of economic reform. C) controlled by state run enterprises. D) poor regions that are targeted for industrial development.
If a production process generates pollution, then a competitive market will
A) produce more of the good than is socially optimal. B) produce less of the good than is socially optimal. C) produce the socially optimal quantity of that good. D) produce zero output.