Scenario Many small shops sell different styles of sweaters. Some stores sell higher-quality and more expensive sweaters than other stores. Dozens companies produce plain white socks. The standard technology for producing socks is widely known and available to anyone who wants to enter the business. Four Internet providers offer similar services to almost everyone in the city. Any new company would have to engage in a price war with the existing companies. Scholastik Inc. owns the U.S. copyright to a popular series of books. It is the only company with the legal right to publish these books in the United States. Hundreds of colleges serve millions of students each year. The colleges vary by location, size, cost, and educational quality, which enables students to match schools to their diverse preferences. The government has granted the U.S. Postal Service the exclusive right to deliver mail. Dozens of pasta producers sell to hundreds of Italian restaurants. Restaurants purchase the least expensive pasta they can find. Producers must pay licensing fees and pass food-safety inspections. Three airlines operate between San Francisco and San Diego. There are not enough potential customers to share the route with a fourth airline without causing the average costs of the existing competitors to rise substantially. Consumers view all airlines as the same service and will select the least expensive one. Number of Firms (One, Few, Many) Type of Product (Homogeneous, Unique, Differentiated) Entry (Easy, Challenging, Impossible) Market Model (Perfect Competition, Monopoly, Monopolistic Competition, Oligopoly)

For distract driving

Game Theory / Economics

38. Consider the following game. There are ten churches in town: nine are Catholic and one is Eastern Orthodox. All churches conduct their divine services at 10am on Sunday morning. You and your friend, without communication, agree to meet at a church service. If you fail to meet at the same church, then you are sad and become a Doomer. What is this game's focal point? Remember that you cannot communicate about this. (A) You meet at any of the Catholic churches. (B) You meet at any of the churches – denomination does not matter. We're all the same bro. (C) You meet at the Orthodox church. (D) There is no focal point. 39. Consider a fractional-reserve banking system in which an initial deposit of $1,000 can generate up to $4,000 in money. What is the reserve ratio? (A) 4 percent. (B) 5 percent. (C) 25 percent. (D) 75 percent.