ECONOMICS MISCS Sophia Mileston 3 Macro. UNIT 3 — MILESTONE 3. Score 16/21.

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7/4/2020 Sophia :: Welcome UNIT 3 — MILESTONE 3 Score 16/21 You passed this Milestone 16 questions were answered correctly. 5 questions were answered incorrectly. 1 When a firm uses four m... achines, it can produce 300 units daily. A fifth machine allows the firm to product 440 units. Which of the following is true regarding production? The marginal product for the fifth machine is 140 units and the average product is 88 units. The total production for nine machines would be 740 units with an average production of 123.33 units. The marginal production for the fifth machine is 440 units and total production would be 740 units. The marginal product for the fourth machine is 300 and the average product is 75 units CONCEPT Product: Total, Marginal, Average, and (Marginal) Revenue 27/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 2/14 Given the following production function for a train engine manufacturing company, at what point (or points) should the firm produce? E & D B & E A D CONCEPT Production Function and Constraints 3 Product Price Cost Per Unit Quantity Sold Quantity Produced Opportunity Cost $1.25 $0.75 690 750 100 Using the data in this table, calculate the firm’s economic profit. -$2007/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 3/14 -$520 -$300 $300 $320 $200 CONCEPT Economic Profit 4 If the goal is to maximize profit, at which point on the graph would a firm’s output be optimized?7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 4/14 Point 3 Point 1 Point 4 Point 2 CONCEPT Output Optimization: Marginal Revenue / Marginal Cost 5 Ben's Bagels charges $10 per dozen bagels and he sells 30 dozen bagels each day. Ben's costs of production total $150 each day. Ben recently quit his job where he earns $100 per day in order to open his bagel store. Ben's accounting profit per day would be __________. $50 $450 $150 $300 CONCEPT Accounting Profit 6 The prisoner’s dilemma in an economic context can be explained as which of the following? A model used to illustrate why collusion tends to break down A model showing the sacrifice made by a firm when choosing one value or opportunity over another7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 5/14 A model showing when running at a loss would actually be beneficial in the long run A model showing how a firm should make decisions when variable cost is high and profit is not CONCEPT Oligopoly 7 Assuming that Marley, a dairy farmer whose farm produces a number of dairy products, operates in a perfectly competitive market. Which of the following statements is true? The products he produces are similar but are differentiated by advertising. No determination about his products can be made. The products he produces are identical and thus homogeneous. The products he produces are unique and varied. CONCEPT Perfect Competition 8 Based on the descriptions below of different jobs Nancy has held, which would qualify as an oligopoly? Nancy was a telemarketer for a software company with many buyers and sellers. Everyone’s products were fairly unique, but it was very easy to enter the software market. One advantage Nancy’s company had was that it had an informational advantage over many other companies.7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 6/14 Nancy was an administrative assistant for an oil company with very few other sellers. Other companies had trouble getting into the fossil fuel market. All the fossil fuel companies had the same information, but they had an information advantage over the buyers. Nancy was a customer service representative for the local water company. The company had exclusive rights to operate as the only company providing water to local residents since the costs to lay competing pipelines were a barrier to entry preventing competition. They were, however, regulated by the government. Nancy was a fruit vendor. In her market there were many buyers and sellers. It was easy and cheap to start a vendor stand. Everyone’s fruits were basically identical. CONCEPT Oligopoly 9 Which of the following is NOT a trait of monopolistic competition? Imperfect information Easy entry and exit to and from the market Firms do not produce at minimum cost Barriers to entry CONCEPT Monopolistic Competition 10 Select the definition of output effect. Amount of revenue lost from lowering the price enough to sell one more unit7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 7/14 The additional revenue from raising the price of a good The revenue that results from selling additional units of a good or service. Market price multiplied by the number of units sold CONCEPT Revenue: Total, Marginal and Average 11 A variable input is one that __________. will change as a result of changes in production is highly expensive to change in the long run will not change over the scope of production will always have increasing costs CONCEPT Production Function and Constraints 127/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 8/14 Given the information on this graph, this firm needs to produce which of the following number of units to break even? 10 11 12 13 CONCEPT Breakeven Point 137/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 9/14 If the firm is decreasing production from Q1 to Q2, how is the firm doing? None of these answer choices are correct. Good; it is making a profit. It is at the break even point. Very poorly; it is past the shutdown point. Poorly; it is at the shutdown point. CONCEPT Shut-down Point 147/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 10/14 When a firm sees average costs start to increase as production increases, this is known as __________. scope of production a firm's shut down point diseconomies of scale increasing total costs CONCEPT Economies, Constant and Diseconomies of Scale 15 Which of the following market structures has only one seller, who acts as a price maker? Monopoly Oligopoly Perfect competition Monopolistic competition CONCEPT Monopoly 16 Marginal cost is equal to the __________. total cost minus fixed costs7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 11/14 average fixed cost plus average variable cost average total cost minus the fixed cost change in total cost involved with producing one more unit CONCEPT Cost: Total, Marginal and Average 17 If the variable costs for a firm are $57, the fixed costs are $143, and the firm sells 40 units, what are the firm's average total costs? $25.00 $10.00 $20.00 $5.00 CONCEPT Cost: Total, Marginal and Average 18 Number of Employees Total Production Marginal Product of Labor Marginal Revenue Product 0 0 0 1 19 19 2 50 31 3 75 25 4 96 21 5 111 15 Based on the data in this table, how many employees should the company hire in order to maximize their profit if the price of product is $5 and cost of each worker is $100?7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 12/14 Three employees Five employees Two employees Four employees CONCEPT Output Optimization: Marginal Revenue Product 19 Based on this graph, what amount should the company choose to produce to maximize profit? 717/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 13/14 0 80 49 65 CONCEPT Output Optimization: Total Revenue / Total Cost 20 Which of the following is true regarding how a market type interacts with constant, increasing and decreasing cost industries? In a perfectly competitive market, firms tend to experience diseconomies of scale at relatively low levels of output. In a monopoly, firms are likely to begin experiencing diseconomies of scale at relatively low levels of output. In a natural monopoly, firms will always reach diseconomies of scale at high levels of output. In a perfectly competitive market, firms will usually experience significant economies of scale until very high levels of output. CONCEPT Constant, Increasing and Decreasing Cost Industries 21 Which of the following is true about the long run average cost curve? The long run average cost curve can be found as the MC from above the shut down point onward.7/4/2020 Sophia :: Welcome https://www.sophia.org/spcc/microeconomics-2/milestone_take_feedbacks/4477403 14/14 The long run average cost curve is comprised of all the lowest points of each of the short run average cost curves because no firm will operate at a level of higher per-unit costs in the long run than in the short run. The long run average cost curve is shaped like a bell and rises because of economies of scale while falling because of diseconomies. The long run average cost curve cannot be equal to or lie below any short run average cost curve because in the short run all factors of production can be variable. CONCEPT About Contact Us Privacy Policy Terms of Use [Show More]

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