ECON 1002 WEEK 5 QUIZ – QUESTION AND ANSWERS

ECON 1002 WEEK 5 QUIZ – QUESTION AND
ANSWERS
 Question 1

3 out of 3 points

An industry in which a small number of large firms sell products that are
either close or perfect substitutes is:
Selected
Answer: an
oligopoly.
Correct
Answer: an
oligopoly.

 Question 2

3 out of 3 points

Which of the following characteristics distinguishes an imperfectly
competitive industry from a perfectly competitive industry?
Selected
Answer: The ability of firms to set their
own price.
Correct
Answer: The ability of firms to set their
own price.

 Question 3

0 out of 3 points

As a result of economies of scale, as output expands:
Selected
Answer: fixed costs are decreasing.
Correct
Answer: average total costs are
decreasing.