Sophia Microeconomics Unit 3 Milestone.docx - Sophia...

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Sophia MicroeconomicsUnit 3 Milestone1Which of the following is why the long run average cost curve mustlie at the same level or below any short run average cost curve?Because in the long run, a firm will generally operate at higher per-unit cost than in theshort runBecause in the long run, all production costs are variableBecause of economies of scaleBecause of the law of diminishing returnsCONCEPT
Long-Run Supply Curve2The additional income a company generates from selling one moreunit due to this is called which of the following?CONCEPT
Revenue: Total, Marginal and Average3
If the goal is to maximize profit, at which point on the graph would afirm’s output be optimized?
Which scenario corresponds with economies of scale?
A decrease in production will cause the next unit to first increase in cost, then decrease,then increase again.CONCEPTEconomies, Constant and Diseconomies of Scale5Which of the scenarios below is an example of a monopoly?A company produces a lemon-lime soda that is identical to others on the market interms of taste but has a recognizable brand because of advertising.In this industry, it is easy to enter and exit the market.A company engages in predatory price cutting in order to discourage any competition.

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Term
Summer
Professor
N/A
Tags
Economics, Nancy, Decreasing Cost Industries

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