Sophia Microeconomics Final Milestone Verified Questions And Answers With 2025 Latest Solutions

Sophia Microeconomics Final Milestone Verified
Questions And Answers With Latest Solutions

, lOMoAR cPSD| 7670600




1●

The minimum efficient scale on the long-run cost curve below occurs
at about what output level?




450 units




300 units
●



750 units
●



900 units
●

, 22 /25
lOMoAR cPSD| 7670600




RATIONALE
MILESTONE
The minimum efficient scale (MES) is the lowest cost point on the
long-run average cost curve. It occurs on this graph at about 450
units.



CONCEPT
→ Long Run for the Firm



2●

Sleek Hair Accessories has produced 35,000 hair bands that cost the
company $0.03 each to make. They recently sold 35,000 of the hair
bands to a local drug store at $0.11 each. Their opportunity cost is
$1,000.

What is Sleek Hair Accessories’ economic profit?



$1,800




$2,350
●



$1,500
●



$2,500
●

, 22 /25
lOMoAR cPSD| 7670600




RATIONALE

Economic profit is (total explicit revenue plus total implicit
revenue) minus (total explicit cost plus total implicit cost). So, the
economic profit would be (35,000 × $0.11) − ((35,000 × $0.03) +
($1,000)) = ($3,850) − ($1,050 + $1,000) = ($3,850) − ($2,050) =
$1,800.
CONCEPTMILESTONE
→ Economic Profit: Implicit Revenue and Costs



3●

Which of the following is an example of microeconomics?