Exam (elaborations) Sophia Microeconomics Unit 3 milestone 3 with correct answers

Microeconomics Unit 3 milestone 3

You passed this Milestone
19 questions were answered correctly.
2 questions were answered incorrectly.
1

Which of the following is a trait of a perfectly competitive market?


Barriers to entry exist

Firms are not producing at minimum cost

Information flows freely

Firms are price makers
CONCEPT
Perfect Competition
2

Average total costs are equal to __________.


marginal cost as production increases

fixed costs plus variable costs

total cost minus quantity provided

average variable plus average fixed costs
CONCEPT
Cost: Total, Marginal and Average
3

, This firm is currently producing at 25 units; which of the following
should it do in order to maximize profit?


The firm should do nothing. It is already producing at maximum optimization.

The firm should increase output to 80 units.

The firm should decrease output.

The firm should shut down production entirely.
CONCEPT
Output Optimization: Marginal Revenue / Marginal Cost
4

Diseconomies of scale are seen when __________.


the long run average cost curve is rising

the fixed cost curve does not change over the scope of production

the marginal cost curve intersects the average cost curve

the marginal revenue curve intersects the marginal cost curve
CONCEPT
Economies, Constant and Diseconomies of Scale
5