Use the following to answer questions : 
-(Table: Production Possibilities Schedule I) Look at the table Production Possibilities Schedule I. If the economy produces two units of consumer goods per period, it also can produce at most _____ units of capital goods per period.
Definitions:
Differentiated Products
Products that are distinguished from others through variations in quality, features, design, branding, or customer service.
Equilibrium Price
The market price at which the quantity of goods supplied is equal to the quantity of goods demanded.
Reaction Curve
A graph that shows how one player's optimal strategy choice depends on the strategy choice of another player.
Bertrand Model
An economic model of competition among firms in which they simultaneously choose prices rather than quantities, with the assumption that consumers choose the firm with the lowest price.
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