Sophia __ Microeconomics Unit 3 Milestone 3.pdf - Score...

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UNIT 3 — MILESTONE 3Score15/21You passed this Milestone15 questions were answered correctly.6 questions were answered incorrectly. 1Which example below represents a fixed input? Office space being rentedHourly employeesUtility billsRaw materials for constructionCONCEPTProduction Function and Constraints 2The Prisoner's Dilemma can come into play when firms ___________.
engage in predatory pricing to move each other out of the marketdecide whether to work together on things like price or production levelsCONCEPTOligopoly 3Which of the following is why the long run average cost curve must lie at the same level or below anyshort run average cost curve? CONCEPTLong-Run Supply Curve 4Product PriceUnit CostUnits SoldUnits ProducedOpportunity Cost$40.00$10.002001100$850Given the information in the table shown above, the accounting profit is which of the following?
-$3,000-$2,150 CONCEPTEconomic Profit 5Which 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 increaseagain.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.CONCEPTEconomies, Constant and Diseconomies of Scale 6 Which of the following is true regarding how a market type interacts with constant, increasing anddecreasing cost industries?

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