ECN 104 Microeconomics Final Test
Questions and Correct Answers
100% Guaranteed Pass
Perfect Competition Characteristics - Answer- - very large # of sellers
- standardized product
- "price takers"
- perfectly elastic demand
- demand graphs as horizontal line
Monopoly Characteristics - Answer- - single seller
- no close substitutes
- price maker
- blocked entry
- non-price competition
Monopolistic Competition Characteristics - Answer- many sellers, product differentiation,
free entry and exit
Oligopoly Characteristics - Answer- 1. few, mutually interdependent firms
2. high barriers to entry
3. limited control over price
4. homogeneous or differentiated product
productive efficiency - Answer- the production of a good in the least costly way
allocative efficiency - Answer- distribution of resources among firms/industries to
produce the goods most wanted by society
Consumer Surplus - Answer- the difference between the highest price a consumer is
willing to pay for a product and market price of product
Producer Surplus - Answer- difference b/w the minimum prices producers are willing to
accept for a product and market price of product
Creative Destruction - Answer- the creation of new products and methods completely
destroys the old products and methods
Deadweight Loss - Answer- A net loss of total (consumer and producer) surplus.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.