A key benefit that monopolistic competition offers to society, which is generally absent in perfect competition, is:

If a monopolistically competitive firm is making positive economic profits in the short run, the process of long-run adjustment ensures that:

Match the characteristic to the correct market structure.

Exam InstructionsThis is an open-notes (print resources only!) examination, however, you may not communicate with anyone or any other resource (including, but not limited to, electronic or web resources) in any way in completing this exam.This restriction prohibits discussion and/or sharing with or from others – electronic or otherwise — of notes, insights, or other materials.You will have 90 minutes to complete the exam.There are 25 multiple choice questions below.Each question is worth 4 points.Remember: choose the best answer for each question, assume only the facts provided, and answer only what is asked.Good Luck!!  

When it comes to choosing among alternative courses of action in a negotiation, most rational people would rather accept a counterparts clearly stated fixed sum benefit rather than a potentially larger but uncertain benefit, where the uncertain option has the same expected value as the fixed sum option.

The following are all proven sources of enhancing one’s power in a negotiation with a key supplier, EXCEPT:

Match the correct Barrier To Entry to each Scenario.

Two rival firms in a duopoly, Alpha and Beta, face a decision regarding production levels: High Output or Low Output. Their payoff matrix (profits in $ thousands) is shown below:   Beta: Low Output Beta: High Output Alpha: Low Output A: $1000, B: $1000 A: $200, B: $1500 Alpha: High Output A: $1500, B: $200 A: $400, B: $400 If both firms pursue their individual self-interest independently, what is the resulting outcome? 

When discussing alternative courses of action with a negotiation counterpart it is worthwhile to note that…

Which of the following is most likely to be a key difference between two-party and larger group negotiations?