The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Suppose that the Republican candidate tells the Democratic candidate that he intends to run a positive campaign. The likely result is that:
A. the Republican candidate will run a positive campaign, and the Democratic candidate will run a negative campaign.
B. both candidates will run a negative campaign.
C. the Republican candidate will run a negative campaign, and the Democratic candidate will run a positive campaign.
D. both candidates will run a positive campaign.
Answer: B
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Monopolistic competition is defined as a type of market structure in which
A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can make an economic profit in the long run. E) firms can easily enter the market but cannot easily exit from it.
A monopolistically competitive firm will end up selling its output for a price such that its
A) price is greater than marginal cost. B) price is equal to marginal cost. C) price is equal to marginal revenue. D) price is equal to average total cost.