GUIDE LATEST 2026/2027 ACTUAL
EXAM QUESTIONS WITH CORRECT
ANSWERS 100% VERIFIED GRADED
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1. Themkeymfeaturemofmmonopolisticmcompetitionmthatmdistinguishesmitmfrommperfectmcompet
itionmism-mCORRECTmANSWERmProductmdifferentiation
2. Firmsminmmonopolisticmcompetitionmcompetemonmthembasismofm-
mCORRECTmANSWERmProductmqualitymandmmarketing
3. Onembenefitmofmmonopolisticmcompetitionmovermperfectmcompetitionmism-
mCORRECTmANSWERmProductmvariety
4. Themdistinguishingmfeaturesmofmoligopolymarem________mandmam________minmthemindustry
m-mCORRECTmANSWERmBarriersmtomentrymandmfewmfirms
5. Gamemtheorymismusedmtomexplainmfirms'mdecisionsminm-mCORRECTmANSWERmAnmoligopoly
6. Twomstudentsmaremassignedmamgroupmproject.mEachmhasmthemoptionmtomworkmormnotmworkm
tomachievemamhighmgrade.Thempayoffsmaremshownminmthemabovemtable.mStudentm1mshouldm-
mCORRECTmANSWERmWorkmregardlessmofmdecisionmmadembymstudentm2
7. Themtablemabovemshowsmthempayoffmmatrixmformamprisoners'mdilemma.mInmthemNashmequili
briumm-mCORRECTmANSWERmBothmprisonersmconfessmandmgetm3myearsminmjail
, 8. Ampositivemproductionmexternalitymism-
mCORRECTmANSWERmAmbenefitmthatmarisesmfrommproductionmandmfallsmonmsomeonemother
mthanmthemproducer
9. Themproblemmformthemprisonersminmthemprisoners'mdilemmamgameminmthemabovemtablemismt
hatm-mCORRECTmANSWERmThemNashmequilibriummismnotmthembestmoutcome
10. Amcartelmism-
mCORRECTmANSWERmAmgroupmofmfirmsmthatmhavemagreedmtomrestrictmtheirmoutputmandminc
reasemtheirmprices
11. Themcostmofmproducingmamgoodmormservicemthatmismpaidmbympeoplemothermthanmthemproduc
ermism-mCORRECTmANSWERmAnmexternalmcost
12. Themmarginalmsocialmcost,mMSC,mofmproducingmamgoodmormservicemequalsm-
mCORRECTmANSWERmMC+mmarginalmexternalmcost
13. ThemCoasemTheoremmismthempropositionmthatmprivatemtransactionsmaremefficientmifmpropert
ymrightsmexist,mifmonlyma________mnumbermofmpartiesmareminvolved,mandmifmtransactionsmc
ostsmarem________m-mCORRECTmANSWERmSmall;mlow
14. Rationalmignorancemaboutmthemefficientmquantitymofmampublicmgoodmcanmresultminm-
mCORRECTmANSWERmBureaucraticmover-provisionmofmamgood
15. Withmamsubsidympaidmtomsellers,mthemsupplymcurvemshiftsm________mandmoutputm________
m-mCORRECTmANSWERmRightward;mincreases
16. Marginalmbenefitmreceivedmbympeoplemothermthanmthemconsumerm________m-
mCORRECTmANSWERmPlusmmarginalmprivatembenefitmequalsmmarginalmsocialmbenefit