WGU C211 Global Economics for Managers Question and Answer | A+ Guaranteed | 2026 Exam Study Guide

WGU C211 Global Economics for Managers
Question and Answer | A+ Guaranteed |
2026 Exam Study Guide
• Economic costs . Answer: Explicit + Implicit Costs

• Explicit Costs . Answer: Monetary payments, material costs, wages, interest

• Implicit costs . Answer: Income you would have earned; value of the next best
use; depreciation and forgone interest

• Accounting profit . Answer: Total revenue - explicit costs

• Economic profit . Answer: TR - economic costs

• Economic profit . Answer: TR - opportunity costs

• Economic profit . Answer: TR - explicit costs - implicit costs

• The short run . Answer: Firms can vary their output by changing resources used

• The long run . Answer: Firms can enter and exit

• Total costs . Answer: Fixed cost + variable costs

• Average fixed cost . Answer: TFC/Q

• Average variable cost . Answer: TVC/Q

• Average total cost . Answer: TC/Q or TFC/Q+TVC/Q

• Marginal cost . Answer: change in TC/Q

• ATC Curve . Answer: U shaped

• Diseconomies of Scale . Answer: Large firms often have problems of
communication and cooperation

,• Economies of Scale . Answer: Labor specialization, managerial specialization,
efficient capital

• Zero economic profit . Answer: Positive accounting profit

• Maximize profit . Answer: Total revenue - total cost

• The goal of firms . Answer: Maximize profit

• Marginal cost . Answer: The amount by which total cost would rise if output
were increased by one unit

• Minimum of average total cost . Answer: The point where marginal-cost curve
crosses average total cost curve

• Four market models . Answer: Perfect, monopolistic, oligopoly, pure monopoly

• Perfect/pure competition . Answer: large number of firms, homogenous goods,
price taker, free entry & exit

• Monopolistic competition . Answer: many firms, differentiated goods, some
control over price, free entry & exit

• Oligopolistic competition . Answer: few firms, homogenous/differentiated
products, price is interdependent, significant barriers to entry/exit

• Monopoly . Answer: one firm, no close substitute for goods, price maker, barrier
to entry/exit

• AR . Answer: TR/Q

• MR . Answer: Change in TR / Change in Q

• Profit maximization . Answer: 1. Produce where TR-TC is greatest or 2. MR =
MC

• Zero economic profit . Answer: Break even point (TR = TC)

• Short run shut down . Answer: Produce if TR < TVC or P < AVC

, • Barriers to entry . Answer: Ownership or control of essential resources, pricing or
other strategic barriers, legal barriers, economies of scale

• Monopoly demand curve . Answer: downward sloping demand; increase sales by
lowering price (MR < P)

• Monopoly produces . Answer: MR = MC

• Monopoly price . Answer: above MC

• Monopoly regulation . Answer: marginal cost pricing rules, average cost pricing
rules, rate of return regulation, and price cap regulation

• Price discrimination . Answer: Charge different customers different prices,
charge each customer their maximum willingness to pay, charge one price for first
unit and lower price for subsequent units

• Competitive firm demand curve . Answer: horizontal line

• Monopolistic competition demand curve . Answer: downward sloping, highly
elastic

• Monopolist competition production . Answer: where MR = MC

• Monopolistic long run . Answer: zero economic profit

• Monopolistic competition . Answer: use advertising and price competition

• Monopolistic competition maximize profit . Answer: choose quantity of output
such that MC = MR

• Short run . Answer: Firms in perfect competition and monopolistic competition
can make profits

• Long run . Answer: With free entry & exit, firms in perfect competition and
monopolistic competition earn zero economic profit

• Game theory . Answer: the study of how people behave in strategic situations