A) Fixed costs B) Variable costs C) Sunk costs D) Fixed costs plus variable costs A) Fixed costs B) Variable costs C) Sunk costs D) Fixed costs plus variable costs D

Exam 2: Benefits, Costs, and Decisions

Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His economic profits is:

Free

(Multiple Choice)

4.9/5

(80)

Question 1

Correct Answer:

Verified

In the long-run,all costs are

Free

(Multiple Choice)

4.9/5

(75)

Question 2

Correct Answer:

Verified

Total costs equal

Free

(Multiple Choice)

4.9/5

(79)

Question 3

Correct Answer:

Verified

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firm's economic profits should

(Multiple Choice)

4.9/5

(80)

Question 4

A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total fixed costs equal

(Multiple Choice)

4.9/5

(92)

Question 5

Jim is planning on attending a football game.He paid $40 for the ticket.He will have to take the day off losing 8 hours of work.His hourly wage is $10.He estimates it will cost him around $20 for gas and parking at the game.Jim's accounting (out of pocket)cost of attending the game equals

(Multiple Choice)

4.8/5

(75)

Question 6

Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His accounting profits is:

(Multiple Choice)

4.9/5

(77)

Question 7

A business owner makes 1000 items a day.Each day she spends 8 hours producing those items.If hired,elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her economic profit?

(Multiple Choice)

4.8/5

(83)

Question 8

A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total variable costs equal

(Multiple Choice)

4.7/5

(78)

Question 9

You are at a restaurant deciding if you would like some dessert after the meal.The dinner is over so you do not want anything else but the dessert.The opportunity cost of getting the dessert would include

(Multiple Choice)

4.9/5

(88)

Question 10

James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store.After one year,James sold the business for 300,000.His accounting profit is:

(Multiple Choice)

4.8/5

(66)

Question 11

Jane makes 1000 items a day.Each day she spends 8 hours producing those items.If hired elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her accounting profit?

(Multiple Choice)

4.7/5

(71)

Question 12

A company currently sells 10,000 units at $9/unit and makes $20,000 accounting profit.Variable costs currently stand at $6 per unit.What are the company's fixed costs?

(Multiple Choice)

4.9/5

(86)

Question 13

If a firm is earning negative accounting profits,it implies

(Multiple Choice)

4.9/5

(62)

Question 14

A business owner makes 50 items a day.She spends 8 hours in producing those items.If hired elsewhere she could have earned $10 an hour.The item sells for $10 each.Production occurs seven days a week.If the explicit costs total $10,000 a month the economic profit for the month equals:

(Multiple Choice)

4.7/5

(77)

Question 15

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.This affects

(Multiple Choice)

4.9/5

(73)

Question 16

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firms accounting profits should

(Multiple Choice)

5.0/5

(81)

Question 17

James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store.After one year,James sold the business for $320,000. What is his accounting profit?

(Multiple Choice)

4.9/5

(60)

Question 18

Lucy can bake 200 cookies in an hour or watch her favorite tv show.If she chooses to watch her show,the cookies are an example of

(Multiple Choice)

4.7/5

(76)

Question 19

The opportunity cost of an action:

(Multiple Choice)

4.7/5

(80)

Question 20

Showing 1 - 20 of 67

Exam 2: Benefits, Costs, and Decisions

​Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His economic profits is:

​In the long-run,all costs are

​Total costs equal

​A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firm's economic profits should

​A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total fixed costs equal

​Jim is planning on attending a football game.He paid $40 for the ticket.He will have to take the day off losing 8 hours of work.His hourly wage is $10.He estimates it will cost him around $20 for gas and parking at the game.Jim's accounting (out of pocket)cost of attending the game equals

​Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His accounting profits is:

​A business owner makes 1000 items a day.Each day she spends 8 hours producing those items.If hired,elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her economic profit?

​A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total variable costs equal

​You are at a restaurant deciding if you would like some dessert after the meal.The dinner is over so you do not want anything else but the dessert.The opportunity cost of getting the dessert would include

​James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store.After one year,James sold the business for 300,000.His accounting profit is:

​Jane makes 1000 items a day.Each day she spends 8 hours producing those items.If hired elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her accounting profit?

​A company currently sells 10,000 units at $9/unit and makes $20,000 accounting profit.Variable costs currently stand at $6 per unit.What are the company's fixed costs?

​If a firm is earning negative accounting profits,it implies

​A business owner makes 50 items a day.She spends 8 hours in producing those items.If hired elsewhere she could have earned $10 an hour.The item sells for $10 each.Production occurs seven days a week.If the explicit costs total $10,000 a month the economic profit for the month equals:

​A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.This affects

​A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firms accounting profits should

​James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store.After one year,James sold the business for $320,000. What is his accounting profit?

​Lucy can bake 200 cookies in an hour or watch her favorite tv show.If she chooses to watch her show,the cookies are an example of

​The opportunity cost of an action:

The One Lessor of Business

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Strategy: the Quest to Keep Profit From Eroding

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His economic profits is:

In the long-run,all costs are

Total costs equal

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firm's economic profits should

A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total fixed costs equal

Jim is planning on attending a football game.He paid $40 for the ticket.He will have to take the day off losing 8 hours of work.His hourly wage is $10.He estimates it will cost him around $20 for gas and parking at the game.Jim's accounting (out of pocket)cost of attending the game equals

Scott used $4,000,000 from his savings account that paid an annual interest of 5% and a $60,000 loan at an annual interest rate of 5% to purchase a hardware store.After one year,Scott sold the business for $4,100,000. His accounting profits is:

A business owner makes 1000 items a day.Each day she spends 8 hours producing those items.If hired,elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her economic profit?

A business incurs the following costs per unit: Labor $125/unit;Materials $45/unit and rent $250,000/month.If the firm produces 1,000,000 units a month,the total variable costs equal

You are at a restaurant deciding if you would like some dessert after the meal.The dinner is over so you do not want anything else but the dessert.The opportunity cost of getting the dessert would include

James used $200,000 from his savings account that paid an annual interest of 10% to purchase a hardware store.After one year,James sold the business for 300,000.His accounting profit is:

Jane makes 1000 items a day.Each day she spends 8 hours producing those items.If hired elsewhere she could have earned $250 an hour.The item sells for $15 each.Production occurs seven days a week.If the explicit costs total $150,000 per month,what is her accounting profit?

A company currently sells 10,000 units at $9/unit and makes $20,000 accounting profit.Variable costs currently stand at $6 per unit.What are the company's fixed costs?

If a firm is earning negative accounting profits,it implies

A business owner makes 50 items a day.She spends 8 hours in producing those items.If hired elsewhere she could have earned $10 an hour.The item sells for $10 each.Production occurs seven days a week.If the explicit costs total $10,000 a month the economic profit for the month equals:

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.This affects

A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firms accounting profits should

James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store.After one year,James sold the business for $320,000. What is his accounting profit?

Lucy can bake 200 cookies in an hour or watch her favorite tv show.If she chooses to watch her show,the cookies are an example of

The opportunity cost of an action: