Page | 1
WGU C211 OA 2025| BRAND NEW ACTUAL
EXAM WITH 100% VERIFIED QUESTIONS AND
CORRECT SOLUTIONS| GUARANTEED VALUE
PACK| ACE YOUR GRADES.
1. A non equity arrangement for a company contemplating entry
into a foreign market - correct answer - licensing
2. What size commitment is required for a non-equity mode of
entry into a foreign market? - correct answer - small
, Page | 2
3. Two supportive pillars of an informal institution - correct answer
- normative and cognitive
4. Reducing uncertainty is the key role of an institution according
to which view - correct answer - institution based view
5. The rules, enforcement mechanisms, and organizations that
support market transactions are referred to as _____. - correct
answer - institutions
6. Two polar types of economies - correct answer - centrally
planned and market
7. In addition to improving efficiency, why might a government
intervene in a market? - correct answer - to promote equality
, Page | 3
8. What is the relationship between marginal cost and total cost? -
correct answer - marginal cost is the change in total cost
divided by the change in quantity
9. A seller maximize profits in a perfectly competitive market by
producing - correct answer - the quantity where P = MC
10. The economic profit of a competitive firm is the difference
between _______ and _______ - correct answer - total
revenue and total cost
11. When average variable costs are above the price, what
should a firm do? - correct answer - temporarily shut down
12. What is the producers demand curve when the producer
sells a differentiated product? - correct answer - downward
sloping
13. A competitive firms demand curve is ______ elastic than a
monopoly's demand curve - correct answer - more
, Page | 4
14. At which point does a monopoly maximize profit? - correct
answer - where MC = MR
15. Many firms and differentiated products - correct answer -
monopolistic competition
16. If the consumers budget constraint has shifted inwards, the
consumer will buy ______ normal goods and ______ inferior
goods - correct answer - fewer normal goods and more inferior
goods
17. If there is an increase in market demand in a perfectly
competitive market, equilibrium price will ______ and
equilibrium quantity will ______ - correct answer - they will both
increase
18. If both demand and supply decrease, what will happen to
equilibrium price and quantity? - correct answer - quantity will
decrease, but price can either increase or decrease
WGU C211 OA 2025| BRAND NEW ACTUAL
EXAM WITH 100% VERIFIED QUESTIONS AND
CORRECT SOLUTIONS| GUARANTEED VALUE
PACK| ACE YOUR GRADES.
1. A non equity arrangement for a company contemplating entry
into a foreign market - correct answer - licensing
2. What size commitment is required for a non-equity mode of
entry into a foreign market? - correct answer - small
, Page | 2
3. Two supportive pillars of an informal institution - correct answer
- normative and cognitive
4. Reducing uncertainty is the key role of an institution according
to which view - correct answer - institution based view
5. The rules, enforcement mechanisms, and organizations that
support market transactions are referred to as _____. - correct
answer - institutions
6. Two polar types of economies - correct answer - centrally
planned and market
7. In addition to improving efficiency, why might a government
intervene in a market? - correct answer - to promote equality
, Page | 3
8. What is the relationship between marginal cost and total cost? -
correct answer - marginal cost is the change in total cost
divided by the change in quantity
9. A seller maximize profits in a perfectly competitive market by
producing - correct answer - the quantity where P = MC
10. The economic profit of a competitive firm is the difference
between _______ and _______ - correct answer - total
revenue and total cost
11. When average variable costs are above the price, what
should a firm do? - correct answer - temporarily shut down
12. What is the producers demand curve when the producer
sells a differentiated product? - correct answer - downward
sloping
13. A competitive firms demand curve is ______ elastic than a
monopoly's demand curve - correct answer - more
, Page | 4
14. At which point does a monopoly maximize profit? - correct
answer - where MC = MR
15. Many firms and differentiated products - correct answer -
monopolistic competition
16. If the consumers budget constraint has shifted inwards, the
consumer will buy ______ normal goods and ______ inferior
goods - correct answer - fewer normal goods and more inferior
goods
17. If there is an increase in market demand in a perfectly
competitive market, equilibrium price will ______ and
equilibrium quantity will ______ - correct answer - they will both
increase
18. If both demand and supply decrease, what will happen to
equilibrium price and quantity? - correct answer - quantity will
decrease, but price can either increase or decrease
