Sophia Microeconomics Unit 3 Milestone 3. Complete With Answers.
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?