1|Page
WGU C211 - GLOBAL ECONOMICS FOR
MANAGERS |LATEST AUTHENTIC
QUESTIONS AND ANSWERS 2026
Marginal cost - correct-answer -The increase in total cost that arises from an extra
unit of production
How is marginal cost related to total cost? - correct-answer -The portion of total
cost resulting from an extra unit of production.
Formula to calculate marginal cost - correct-answer -Change in total cost divided
by change in quantity
,2|Page
If Dave's company has a total cost of $100 when quantity output is 5, and a total
cost of $115 when quantity output is 6, what is the marginal cost of producing the
6th unit? - correct-answer -$15
Total cost is made of two types of costs, what are they? - correct-answer -Fixed
and Variable.
How does a firm determine to shut down in the short-run? What rule
characterizes this? - correct-answer -If the revenue that it would earn from
producing is less than its variable costs of production. P<AVC (Price is less than
Avg Variable Cost)
Market structure characterized as being "price takers" - correct-answer -
Competitive markets
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Price taker - correct-answer -One who must accept the price as the market
determines
When a market is characterized as being a price taker, what fundamental shape
does the demand curve for this market take? - correct-answer -Horizontal line.
Demand curve for a perfectly competitive firm - correct-answer -Horizontal line
Demand curve for a monopolistic market - correct-answer -Downward-sloping
What does "downward" sloping with regards to a demand curve mean? - correct-
answer -The monopoly has to accept a lower price if it wants to sell more output.
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Where do firms with market power determine the quantity of product/service
they will produce? - correct-answer -A firm chooses a quantity of output such that
marginal revenue equals marginal cost. The firm chooses quantity so that price
equals marginal cost. Thus, the firm's marginal-cost curve is its supply curve.
Primary goal/objective of a firm - correct-answer -Maximize profit.
If the firm has price setting capacity, how will they use information about
marginal costs and marginal revenues in order to accomplish their primary
objective? - correct-answer -The monopolist's profit-maximizing quantity of
output is determined by the intersection of the marginal-revenue curve and the
marginal-cost curve.
Describe the basic distinctions between the market models with respect to:
number of market participants, type of product being marketed, ease of
entry/exit into the market and the prevalence of advertising/marketing - correct-
WGU C211 - GLOBAL ECONOMICS FOR
MANAGERS |LATEST AUTHENTIC
QUESTIONS AND ANSWERS 2026
Marginal cost - correct-answer -The increase in total cost that arises from an extra
unit of production
How is marginal cost related to total cost? - correct-answer -The portion of total
cost resulting from an extra unit of production.
Formula to calculate marginal cost - correct-answer -Change in total cost divided
by change in quantity
,2|Page
If Dave's company has a total cost of $100 when quantity output is 5, and a total
cost of $115 when quantity output is 6, what is the marginal cost of producing the
6th unit? - correct-answer -$15
Total cost is made of two types of costs, what are they? - correct-answer -Fixed
and Variable.
How does a firm determine to shut down in the short-run? What rule
characterizes this? - correct-answer -If the revenue that it would earn from
producing is less than its variable costs of production. P<AVC (Price is less than
Avg Variable Cost)
Market structure characterized as being "price takers" - correct-answer -
Competitive markets
,3|Page
Price taker - correct-answer -One who must accept the price as the market
determines
When a market is characterized as being a price taker, what fundamental shape
does the demand curve for this market take? - correct-answer -Horizontal line.
Demand curve for a perfectly competitive firm - correct-answer -Horizontal line
Demand curve for a monopolistic market - correct-answer -Downward-sloping
What does "downward" sloping with regards to a demand curve mean? - correct-
answer -The monopoly has to accept a lower price if it wants to sell more output.
, 4|Page
Where do firms with market power determine the quantity of product/service
they will produce? - correct-answer -A firm chooses a quantity of output such that
marginal revenue equals marginal cost. The firm chooses quantity so that price
equals marginal cost. Thus, the firm's marginal-cost curve is its supply curve.
Primary goal/objective of a firm - correct-answer -Maximize profit.
If the firm has price setting capacity, how will they use information about
marginal costs and marginal revenues in order to accomplish their primary
objective? - correct-answer -The monopolist's profit-maximizing quantity of
output is determined by the intersection of the marginal-revenue curve and the
marginal-cost curve.
Describe the basic distinctions between the market models with respect to:
number of market participants, type of product being marketed, ease of
entry/exit into the market and the prevalence of advertising/marketing - correct-
