Sophia Microeconomics Unit 3 Milestone 3. Complete With Answers.Which example below represents a fixed input?
Office space being rented
Hourly employees
Utility bills
Raw materials for construction
CONCEPT
Producti
...
Sophia Microeconomics Unit 3 Milestone 3. Complete With Answers.Which example below represents a fixed input?
Office space being rented
Hourly employees
Utility bills
Raw materials for construction
CONCEPT
Production Function and Constraints
2
The Prisoner's Dilemma can come into play when firms ___________.
are forced to advertise and market their goods to consumers
are regulated by the government in order to provide fair pricing to consumers
engage in predatory pricing to move each other out of the market
decide whether to work together on things like price or production levels
CONCEPT
Oligopoly
3
Which of the following is why the long run average cost curve must lie at the same level or below any
short run average cost curve?
Because of economies of scale
Because in the long run, all production costs are variable
Because of the law of diminishing returns
Because in the long run, a firm will generally operate at higher per-unit cost than in the short run
CONCEPT
Long-Run Supply Curve
4
Product Price Unit Cost Units Sold Units Produced Opportunity Cost
$40.00 $10.00 200 1100 $850
Given the information in the table shown above, the accounting profit is which of the following?
$11,000
$8,000
-$3,000
-$2,150
CONCEPT
Economic Profit
5
Which scenario corresponds with economies of scale?
An increase in production will cause the cost of the next unit to increase.
A decrease in production will cause the next unit to first increase in cost, then decrease, then increase
again.
An increase in production will cause the cost of the next unit to decrease.
A decrease in production will cause the next unit to cost the same.
CONCEPT
Economies, Constant and Diseconomies of Scale
6
Which of the following is true regarding how a market type interacts with constant, increasing and
decreasing cost industries?
[Show More]