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D089 / D 089 Objective Assessment ( Update 2025 / 2026) Principles of Economics Module Questions and Answers - WGU
Question:
The graph shows the long run average cost curve for a firm making home use treadmills. If the price in the market is $500 and the quantity demanded for treadmills is 10,000, what is the largest number of firms that could exist in this market?
- 2
- 3
- 4
- 1
Answer:
- 2
- / 4
Question:
Which market structures have significant barriers to entry or exit?(Select all that apply)
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Answer:
- Oligopoly
- Monopoly
Question:
Which market structures have firms who are price takers?(Select all that apply)
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Answer:
- Perfect Competition 2 / 4
Question:
Which market structures can have firms producing differentiated products?(Select all that apply)
- Perfect Competition
- Monopoly
- Oligopoly
- Monopolistic Competition
Answer:
- Oligopoly
- Monopolistic Competition
Question:
Which market structures have many buyers and sellers?(Select all that apply)
- Oligopoly
- Monopoly
- Perfect Competition
- Monopolistic Competition
Answer:
- Perfect Competition
- Monopolistic Competition 3 / 4
Question:
Which market structures show zero economic profits in the long run?(Select all that apply)
- Oligopoly
- Perfect Competition
- Monopolistic Competition
- Monopoly
Answer:
- Perfect Competition
- Monopolistic Competition
Question:
Under which of the four market structures do firms maximize profits by producing the quantity where marginal cost is equal to marginal revenue (MC
= MR)?
- Perfect competition and monopolistic competition
- Perfect competition
- All market structures except monopoly
- All market structures
Answer:
- All market structures
Feedback: Regardless of the market structure in which they operate, firms
maximize profits by producing the quantity where MC = MR.
- / 4
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