1. A dominant strategy in an oligopoly game is a strategy that is best for a player _____.

A. as long as its competitor follows the same strategy

B. regardless of the strategy of the other player

C. as long as its competitor follows a different strategy

D. as long as no additional players are allowed to play

E. when both players cooperate

2. Which of the following is always true for monopolistically competitive firms in the short run?

A. Marginal revenue equals marginal cost.

B. Economic profit equals zero.

C. Price equals average total cost.

D. Average total cost is minimized.

E. Marginal revenue equals price.

3. The restaurant industry in a large city most closely resembles the market structure of which of the following?

A. perfect competition

B. monopolistic competition

C. monopoly

D. oligopoly with cooperative behavior

E. oligopoly without cooperative behavior