Econ reviewed assessment questions and correct answers GRADED A

ECON REVIEWED
ASSESSMENT QUESTIONS
AND CORRECT ANSWERS
GRADED A+2025-2026
1. Refer to #1 sample Figure 15-4. If the monopoly firm wants to maximize its profit, it
should operate at a level of output equal to
a. Q1.
b. Q2.
c. Q3.
d. Q4. - ANS-Q3


2) Refer to #2 sample Figure 15-9. What is the economically efficient output level?
A) 600 units
B) 800 units
C) 940 units
D) 1160 units - ANS-940


3) Refer to Figure 15-10. What is the area that represents consumer surplus under a
monopoly?
A) the triangle P0P1F
B) the triangle P0P2E

C) the trapezium P1P2EF
D) the rectangle P1P3HF - ANS-the triangle P0P1F

, Refer to Figure 15-10. What is the area that represents producer surplus under a
monopoly?
A) the triangle 0P2E
B) the triangle 0P3H
C) the trapezium 0P1FH
D) the rectangle P1P3HF - ANS-the trapezium 0P1FH


Refer to Figure 15-10. The deadweight loss due to a monopoly is represented by the
area
A) FHE.
B) FGE.
C) GEH.
D) FQ1Q2E - ANS-FHE


A characteristic found only in oligopolies is
A) break even level of profits.
B) interdependence of firms.

C) independence of firms.
D) products that are slightly different. - ANS-interdependence of firms.


A cartel is
A) a temporary storage facility for automobiles.
B) a group of firms that enter into an informal agreement to fix prices to maximize
joint profits.
C) a group of firms that enter into a formal agreement to fix prices to maximize joint
profits.

D) an example of a group of firms that collectively regulate a competitive industry. -
ANS-a group of firms that enter into a formal agreement to fix prices to maximize joint
profits.


What is the incentive for a firm to join a cartel?
A) to be able to earn profits in the long run but not in the short run