WGUl D089l Finall Examl (NEWl 2026/l
2027l Update)l Principlesl ofl Economicsl
Review|l Questionsl &l Answersl |l Gradel
A|l 100%l Correctl (Verifiedl Solutions)
QUESTION
long-runl averagel costl curve
Answer:
lowestl possiblel averagel costl ofl production,l allowingl alll inputsl tol productionl tol
varyl sol thatl thel firml isl choosingl itsl productionl technology
QUESTION
SRACl curves
Answer:
averagel totall costl curvel inl thel shortl term,l totall ofl averagel fixedl costs/averagel
variablel costs
QUESTION
economiesl ofl scale
Answer:
proportionatel savingsl inl costsl gainedl byl anl increasedl levell ofl production
QUESTION
constantl returnsl tol scale
Answer:
increasel inl inputsl causel thel samel increasel inl output
,QUESTION
diseconomiesl ofl scale
Answer:
leadl tol anl increasel inl averagel costsl asl al businessl growsl beyondl al certainl size
QUESTION
perfectlyl competitive
Answer:
typel ofl marketl withl manyl consumerl andl producersl alll ofl whoml arel pricel takersl
becausel theyl selll identicall products
QUESTION
monopolisticl competition
Answer:
multiplel firmsl sellingl differentiatedl productsl inl al marketl withl al lowl barrierl tol
entry
QUESTION
oligopy
Answer:
economicl conditionl inl whichl al smalll numberl ofl seller'sl exertl controll overl thel
marketl ofl al commodity
QUESTION
monopoly
Answer:
, firml producesl al goodl thatl hasl nol closel substitutel inl al marketl wherel barrierl tol
entryl preventsl otherl firmsl froml enteringl thel market
QUESTION
incumbent
Answer:
establishedl playerl inl market
QUESTION
marketl power
Answer:
abilityl tol setl thel price
QUESTION
perfectlyl elastic
Answer:
anyl increasel inl pricel willl causel demandl tol dropl tol 0
QUESTION
acquistion
Answer:
whenl onel firml purchasesl another
QUESTION
HHI
Answer:
suml ofl squaresl ofl marketl sharel ofl eachl inl thel industry
2027l Update)l Principlesl ofl Economicsl
Review|l Questionsl &l Answersl |l Gradel
A|l 100%l Correctl (Verifiedl Solutions)
QUESTION
long-runl averagel costl curve
Answer:
lowestl possiblel averagel costl ofl production,l allowingl alll inputsl tol productionl tol
varyl sol thatl thel firml isl choosingl itsl productionl technology
QUESTION
SRACl curves
Answer:
averagel totall costl curvel inl thel shortl term,l totall ofl averagel fixedl costs/averagel
variablel costs
QUESTION
economiesl ofl scale
Answer:
proportionatel savingsl inl costsl gainedl byl anl increasedl levell ofl production
QUESTION
constantl returnsl tol scale
Answer:
increasel inl inputsl causel thel samel increasel inl output
,QUESTION
diseconomiesl ofl scale
Answer:
leadl tol anl increasel inl averagel costsl asl al businessl growsl beyondl al certainl size
QUESTION
perfectlyl competitive
Answer:
typel ofl marketl withl manyl consumerl andl producersl alll ofl whoml arel pricel takersl
becausel theyl selll identicall products
QUESTION
monopolisticl competition
Answer:
multiplel firmsl sellingl differentiatedl productsl inl al marketl withl al lowl barrierl tol
entry
QUESTION
oligopy
Answer:
economicl conditionl inl whichl al smalll numberl ofl seller'sl exertl controll overl thel
marketl ofl al commodity
QUESTION
monopoly
Answer:
, firml producesl al goodl thatl hasl nol closel substitutel inl al marketl wherel barrierl tol
entryl preventsl otherl firmsl froml enteringl thel market
QUESTION
incumbent
Answer:
establishedl playerl inl market
QUESTION
marketl power
Answer:
abilityl tol setl thel price
QUESTION
perfectlyl elastic
Answer:
anyl increasel inl pricel willl causel demandl tol dropl tol 0
QUESTION
acquistion
Answer:
whenl onel firml purchasesl another
QUESTION
HHI
Answer:
suml ofl squaresl ofl marketl sharel ofl eachl inl thel industry
