WGU C211 EXAM LATEST 2026 UPDATED QUESTIONS AND
VERIFIED 100% SOLUTIONS (2026/2027) |A+ GRADED
|GUARANTEED PASS
What is the economic profit of a competitive firm? - Answers -The difference between total
revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut down? - Answers -
Average variable costs are above the price.
What is the producer's demand curve if the producer sells a differentiated product? - Answers -
Downward sloping
Which statement describes a competitive firm's demand curve? - Answers -It is more elastic
than a monopoly's demand curve.
What is the point at which a monopoly maximizes profit? - Answers -Where marginal cost
equals marginal revenue
What is a characteristic of monopolistic competition? - Answers -Many firms and differentiated
products
1|Page
, What is a likely outcome of the standard prisoner's dilemma game? - Answers -Both prisoners
confess.
How does the prisoner's dilemma help in understanding company behavior in an oligopoly? -
Answers -Company strategies must consider actions by rival firms.
What do economists use to represent a consumer's preferences? - Answers -Indifference curves
What can be assumed that the consumer will buy if it is observed that the consumer's budget
constraint has shifted inward? - Answers -Fewer normal goods and more inferior goods
What will happen to the market price and quantity in the short run if there is an increase in
market demand in a perfectly competitive market? - Answers -The equilibrium price will
increase, and the equilibrium quantity will increase.
What will happen to equilibrium quantity and price if both demand and supply decrease? -
Answers -Quantity will decrease but price can either increase or decrease.
What happens to demand quantity for normal goods as percentage change in income
increases? - Answers -Demand quantity increases.
2|Page
VERIFIED 100% SOLUTIONS (2026/2027) |A+ GRADED
|GUARANTEED PASS
What is the economic profit of a competitive firm? - Answers -The difference between total
revenue and total cost
Which condition applies when a competitive firm decides to temporarily shut down? - Answers -
Average variable costs are above the price.
What is the producer's demand curve if the producer sells a differentiated product? - Answers -
Downward sloping
Which statement describes a competitive firm's demand curve? - Answers -It is more elastic
than a monopoly's demand curve.
What is the point at which a monopoly maximizes profit? - Answers -Where marginal cost
equals marginal revenue
What is a characteristic of monopolistic competition? - Answers -Many firms and differentiated
products
1|Page
, What is a likely outcome of the standard prisoner's dilemma game? - Answers -Both prisoners
confess.
How does the prisoner's dilemma help in understanding company behavior in an oligopoly? -
Answers -Company strategies must consider actions by rival firms.
What do economists use to represent a consumer's preferences? - Answers -Indifference curves
What can be assumed that the consumer will buy if it is observed that the consumer's budget
constraint has shifted inward? - Answers -Fewer normal goods and more inferior goods
What will happen to the market price and quantity in the short run if there is an increase in
market demand in a perfectly competitive market? - Answers -The equilibrium price will
increase, and the equilibrium quantity will increase.
What will happen to equilibrium quantity and price if both demand and supply decrease? -
Answers -Quantity will decrease but price can either increase or decrease.
What happens to demand quantity for normal goods as percentage change in income
increases? - Answers -Demand quantity increases.
2|Page
