ECON 211 FINAL EXAM QUESTIONS AND ANSWERS
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
2026/2027 UPDATE | GRADED A+ (ASSURED PASS)
All of the following are characteristics of monopolistic competition EXCEPT -
CORRECT ANSWER- a few firms dominate the industry.
In a monopolistically competitive market, a firm should advertise to the point at
which - CORRECT ANSWER- the additional revenue generated by one more dollar
of advertising just equals the extra dollar cost of advertising.
A monopolistic competitor is in long-run equilibrium when - CORRECT ANSWER-
economic profits are equal to zero and the average total cost curve is tangent to the
demand curve.
Monopolistic competition and perfect competition are similar in that each market
structure is characterized by - CORRECT ANSWER- the absence of long-run
economic profits.
This is the correct answer.
When a firm relies on social media ads to reach potential customers, the firm is
engaging in - CORRECT ANSWER- mass marketing.
John has just tried on the most comfortable pair of pants that he has ever known.
,The pants are a(n) - CORRECT ANSWER- experience good.
Which of the following is NOT a feature of monopolistic competition? - CORRECT
ANSWER- inability of firms to enter or exit the market
In the figure, the profit-maximizing monopolistically competitive firm will -
CORRECT ANSWER- make a profit of $30,000.
Which of the following combinations would constitute a vertical merger? -
CORRECT ANSWER- General Motors and Bridgestone Tire Company
If an industry has 25 firms that collectively have $150 million in total sales and the
top three firms in this industry account for $78 million in sales and the fifth
through twentyminusfifth firms account for $60 million in sales, what is the
amount of sales for the fourth largest firm? - CORRECT ANSWER- $12 million
A noncooperative game situation may occur when - CORRECT ANSWER- firms
find collusion too costly.
Marginal cost for an information product would - CORRECT ANSWER- remain
constant as quantity increases
A merger between firms in which one firm purchases an input from the other is
called a - CORRECT ANSWER- vertical merger.
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, 741484450When a player in a game adopts a strategy which always
yields the highest benefit regardless of what the other player does, that player is
using a(n) - CORRECT ANSWER- dominant strategy.
A cartel most likely forms in - CORRECT ANSWER- an oligopolistic market.
In the long run, in a monopolistically competitive market, price will be -
CORRECT ANSWER- equal to ATC
The type of advertising used for an experience good is - CORRECT ANSWER-
persuasive advertising.
In the long run, the price of information products in monopolistically competitive
markets will be equal to - CORRECT ANSWER- ATC
Frank purchases snickle-dees only because his friends do. This is a - CORRECT
ANSWER- positive market feedback.
Long-run economic profits are possible under - CORRECT ANSWER- oligopoly and
monopoly.
(VERIFIED AND WELL DETAILED ANSWERS) LATEST
2026/2027 UPDATE | GRADED A+ (ASSURED PASS)
All of the following are characteristics of monopolistic competition EXCEPT -
CORRECT ANSWER- a few firms dominate the industry.
In a monopolistically competitive market, a firm should advertise to the point at
which - CORRECT ANSWER- the additional revenue generated by one more dollar
of advertising just equals the extra dollar cost of advertising.
A monopolistic competitor is in long-run equilibrium when - CORRECT ANSWER-
economic profits are equal to zero and the average total cost curve is tangent to the
demand curve.
Monopolistic competition and perfect competition are similar in that each market
structure is characterized by - CORRECT ANSWER- the absence of long-run
economic profits.
This is the correct answer.
When a firm relies on social media ads to reach potential customers, the firm is
engaging in - CORRECT ANSWER- mass marketing.
John has just tried on the most comfortable pair of pants that he has ever known.
,The pants are a(n) - CORRECT ANSWER- experience good.
Which of the following is NOT a feature of monopolistic competition? - CORRECT
ANSWER- inability of firms to enter or exit the market
In the figure, the profit-maximizing monopolistically competitive firm will -
CORRECT ANSWER- make a profit of $30,000.
Which of the following combinations would constitute a vertical merger? -
CORRECT ANSWER- General Motors and Bridgestone Tire Company
If an industry has 25 firms that collectively have $150 million in total sales and the
top three firms in this industry account for $78 million in sales and the fifth
through twentyminusfifth firms account for $60 million in sales, what is the
amount of sales for the fourth largest firm? - CORRECT ANSWER- $12 million
A noncooperative game situation may occur when - CORRECT ANSWER- firms
find collusion too costly.
Marginal cost for an information product would - CORRECT ANSWER- remain
constant as quantity increases
A merger between firms in which one firm purchases an input from the other is
called a - CORRECT ANSWER- vertical merger.
,Thank you for Purchasing this exam
Study Guide. We provide high-quality
academic materials to help students
excel in exams. Our other Services
include but not limited to: academic
research, University & College
assignments writing, essay writing,
Online Classes, and research projects.
Our services are reliable, affordable,
and plagiarism-free. All the Best in
your Exam. For more information;
Contact us at:
or
0R +254
, 741484450When a player in a game adopts a strategy which always
yields the highest benefit regardless of what the other player does, that player is
using a(n) - CORRECT ANSWER- dominant strategy.
A cartel most likely forms in - CORRECT ANSWER- an oligopolistic market.
In the long run, in a monopolistically competitive market, price will be -
CORRECT ANSWER- equal to ATC
The type of advertising used for an experience good is - CORRECT ANSWER-
persuasive advertising.
In the long run, the price of information products in monopolistically competitive
markets will be equal to - CORRECT ANSWER- ATC
Frank purchases snickle-dees only because his friends do. This is a - CORRECT
ANSWER- positive market feedback.
Long-run economic profits are possible under - CORRECT ANSWER- oligopoly and
monopoly.
