# ECON 101 ECON101 Final Exam with Answers (American Public University)

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ECON 101 ECON/101 ECON101 Week 8 Final Exam (APUS)

1. The representative firm in a purely competitive industry:
2. An example of a monopolistically competitive industry would be:
3. Firms in an industry will not earn long-run economic profits if:
4. Marginal product is:
5. The law of diminishing returns indicates that:
6. If average total cost is declining, then:
7. Average fixed costs diminish continuously as output increases.
8. Patents and copyrights were established by the government to reduce oligopoly and monopoly power.
9. A purely competitive firm is a price maker, but a monopolist is a price taker.
10. The profit-maximizing rule MC = MR is followed by firms under:
11. A perfectly competitive firm will continue producing in the short run as long as it can cover its:
12. A perfectly competitive firm will earn a profit and will continue producing the profit-maximizing quantity of output in the short run if price is:
13. Monopolistic competition is an industry characterized by:
14. If a perfectly competitive firm increases production from 10 units to 11 units, and the market price is \$20 per unit, total revenue for 10 units is:
15. The demand curve facing a monopolist is:
16. Suppose that a monopolist increases production from 10 units to 11 units. If the market price declines from \$30 per unit to \$29 per unit, marginal revenue for the eleventh unit is:
17. Most electric, gas, and water companies are examples of:
18. If a perfectly competitive firm is producing a quantity that generates P > MC, then profit:
19. Evaluate the following statement using economic reasoning: "A monopolist can charge whatever she wants because she is the only source available."
20. Identify and describe a real world example of an oligopoly. What characteristics of this market fit the definition of an oligopoly? What role does advertising play in this market? Is this consistent with what youâ€™ve learned about advertising and oligopoly in this course?

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