lOMoAR cPSD| 63316909
ECON 247 Quiz 9 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
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Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is
worthwhile to advertise. If all of them advertise, each will earn a profit of $5000. If none of them
advertise, each will earn a profit of $8000. If only one of them advertises, the one who advertises
will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those
two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their
dominant strategy, what will Anna do, and how much will she earn?
Select one:
a. Anna will advertise and earn $5000.
b. Anna will advertise and earn $6000.
c. Anna will not advertise and will earn $8000.
d. Anna will advertise and earn $10,000.
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Your answer is correct.
The correct answer is: Anna will advertise and earn $5000.
Question 2
Correct
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Question text
A monopolistically competitive firm’s choice of output level is virtually identical to the choice made by
________________ firm.
Select one:
a. a perfectly competitive firm
b. a duopolist
c. a monopolist
d. an oligopolist
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Your answer is correct.
The correct answer is: a monopolist
Question 3
Correct
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Which statement best explains the characteristics of a monopolistically competitive market?
Select one:
, lOMoAR cPSD| 63316909
a. There are only a few sellers.
b. Each firm takes the price of its product as given.
c. Firms can enter or exit the market without restriction.
d. Each firm produces a product that is essentially identical to the products of other firms in
the market.
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Your answer is correct.
The correct answer is: Firms can enter or exit the market without restriction.
Question 4
Correct
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Question text
What has happened to advertising and competition in markets for professional services such as legal,
medical, and dental services?
Select one:
a. Advertising has decreased in recent years, and competition in these markets has
been enhanced.
b. Advertising has decreased in recent years, and competition in these markets has
been reduced.
c. Advertising has increased in recent years, and competition in these markets has
been enhanced.
d. Advertising has increased in recent years, and competition in these markets has been reduced.
Feedback
Your answer is correct.
The correct answer is: Advertising has increased in recent years, and competition in these markets has been
enhanced.
Question 5
Correct
Mark 1.00 out of 1.00
ECON 247 Quiz 9 Questions and Detailed Correct Answers
Graded A+ | 2026/2027 Update | Athabasca University
Question 1
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is
worthwhile to advertise. If all of them advertise, each will earn a profit of $5000. If none of them
advertise, each will earn a profit of $8000. If only one of them advertises, the one who advertises
will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those
two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their
dominant strategy, what will Anna do, and how much will she earn?
Select one:
a. Anna will advertise and earn $5000.
b. Anna will advertise and earn $6000.
c. Anna will not advertise and will earn $8000.
d. Anna will advertise and earn $10,000.
Feedback
Your answer is correct.
The correct answer is: Anna will advertise and earn $5000.
Question 2
Correct
Mark 1.00 out of 1.00
, lOMoAR cPSD| 63316909
Flag question
Question text
A monopolistically competitive firm’s choice of output level is virtually identical to the choice made by
________________ firm.
Select one:
a. a perfectly competitive firm
b. a duopolist
c. a monopolist
d. an oligopolist
Feedback
Your answer is correct.
The correct answer is: a monopolist
Question 3
Correct
Mark 1.00 out of 1.00
Flag question
Question text
Which statement best explains the characteristics of a monopolistically competitive market?
Select one:
, lOMoAR cPSD| 63316909
a. There are only a few sellers.
b. Each firm takes the price of its product as given.
c. Firms can enter or exit the market without restriction.
d. Each firm produces a product that is essentially identical to the products of other firms in
the market.
Feedback
Your answer is correct.
The correct answer is: Firms can enter or exit the market without restriction.
Question 4
Correct
Mark 1.00 out of 1.00
Question text
What has happened to advertising and competition in markets for professional services such as legal,
medical, and dental services?
Select one:
a. Advertising has decreased in recent years, and competition in these markets has
been enhanced.
b. Advertising has decreased in recent years, and competition in these markets has
been reduced.
c. Advertising has increased in recent years, and competition in these markets has
been enhanced.
d. Advertising has increased in recent years, and competition in these markets has been reduced.
Feedback
Your answer is correct.
The correct answer is: Advertising has increased in recent years, and competition in these markets has been
enhanced.
Question 5
Correct
Mark 1.00 out of 1.00
