Question 1

Use the following to answer questions 4-8:
  
-If the firm hires 5 workers,the average cost equals

Accepted Answer

A) $10 
B) $1000 
C) $80 
D) Need more information 
A) $10 
B) $1000 
C) $80 
D) Need more information

Question 2

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week)at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced.The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?

Accepted Answer

A) total variable cost is $17,000;total fixed cost is $2,250;total cost is $19,250 
B) total variable cost is $12,000;total fixed cost is $7,250;total cost is $19,250 
C) total variable cost is $5,000;total fixed cost is $14,250;total cost is $19.250 
D) total variable cost is $5,000;total fixed cost is $2,250;total cost is $7,250 
A) total variable cost is $17,000;total fixed cost is $2,250;total cost is $19,250 
B) total variable cost is $12,000;total fixed cost is $7,250;total cost is $19,250 
C) total variable cost is $5,000;total fixed cost is $14,250;total cost is $19.250 
D) total variable cost is $5,000;total fixed cost is $2,250;total cost is $7,250

Question 3

Marginal revenue

Accepted Answer

A) Is the additional revenue incurred by selling one more unit 
B) Is the total revenue incurred by selling one more unit 
C) Is the total revenue incurred by selling all the firm's output 
D) Is the difference between total revenue and total costs 
A) Is the additional revenue incurred by selling one more unit 
B) Is the total revenue incurred by selling one more unit 
C) Is the total revenue incurred by selling all the firm's output 
D) Is the difference between total revenue and total costs

Question 4

If AVC=$5 and AFC=15,then ATC=

Accepted Answer

A) $10 
B) $5 
C) $15 
D) $20 
A) $10 
B) $5 
C) $15 
D) $20

Question 5

Use the following to answer questions 4-8:
  
-If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,

Accepted Answer

A) the firm should not hire the 4th worker as MBMC D) the firm should not hire the 4th worker as MBMC D) the firm should not hire the 4th worker as MB

Question 6

With fixed costs of $200,a firm has average total costs of $5 and average variable costs of $3.Its output is:

Accepted Answer

A) 100 units. 
B) 40 units. 
C) 66.67 units. 
D) Need more information 
A) 100 units. 
B) 40 units. 
C) 66.67 units. 
D) Need more information

Question 7

Managers undertake an investment only if

Accepted Answer

A) Marginal benefits of the investment are greater than zero 
B) Marginal costs of the investment are less than marginal benefits of the investment 
C) Marginal benefits are greater than marginal costs 
D) Investment decisions do not depend on marginal analysis 
A) Marginal benefits of the investment are greater than zero 
B) Marginal costs of the investment are less than marginal benefits of the investment 
C) Marginal benefits are greater than marginal costs 
D) Investment decisions do not depend on marginal analysis

Question 8

Use the following to answer questions 11-16:
  
-If the firm hires 5 workers,the total amount of fixed costs equals

Accepted Answer

A) $250 
B) $50 
C) $200 
D) $1200 
A) $250 
B) $50 
C) $200 
D) $1200

Question 9

A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week.The cost of hiring him or her is $1500 per week.If the price of each unit is $20,

Accepted Answer

A) the MR of hiring the worker is $2000 
B) The MC of hiring the worker is $1500 
C) The firm should hire the worker since MB>MC 
D) All the above 
A) the MR of hiring the worker is $2000 
B) The MC of hiring the worker is $1500 
C) The firm should hire the worker since MB>MC 
D) All the above

Question 10

Use the following to answer questions 11-16:
  
-If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,

Accepted Answer

A) the firm should not hire the 6th worker as MBMC D) the firm should not hire the 6th worker as MBMC D) the firm should not hire the 6th worker as MB

Question 11

Jim' burger produces 500 burgers per week.Each burger is priced at $3.What is the marginal revenue of selling the 50th burger?

Accepted Answer

A) $3 
B) $150 
C) $147 
D) It cannot be determined with the information given 
A) $3 
B) $150 
C) $147 
D) It cannot be determined with the information given

Use the following to answer questions 4-8: -If the firm hires 5 workers,the average cost equals

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week)at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced.The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?

Marginal revenue

If AVC=$5 and AFC=15,then ATC=

Use the following to answer questions 4-8: -If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,

With fixed costs of $200,a firm has average total costs of $5 and average variable costs of $3.Its output is:

Managers undertake an investment only if

Use the following to answer questions 11-16: -If the firm hires 5 workers,the total amount of fixed costs equals

A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week.The cost of hiring him or her is $1500 per week.If the price of each unit is $20,

Use the following to answer questions 11-16: -If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,

Jim' burger produces 500 burgers per week.Each burger is priced at $3.What is the marginal revenue of selling the 50th burger?

The One Lessor of Business

Benefits, Costs, and 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 Indirect 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

Exam 4: Extent How Muchdecisions

Use the following to answer questions 4-8: -If the firm hires 5 workers,the average cost equals

A firm produces 500 units per week.It hires 20 full-time workers (40 hours/week)at an hourly wage of $15.Raw materials are ordered weekly and they costs $10 for every unit produced.The weekly cost of the rent payment for the factory is $2,250.How do the overall costs breakdown?

Marginal revenue

If AVC=$5 and AFC=15,then ATC=

Use the following to answer questions 4-8: -If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,

With fixed costs of $200,a firm has average total costs of $5 and average variable costs of $3.Its output is:

Managers undertake an investment only if

Use the following to answer questions 11-16: -If the firm hires 5 workers,the total amount of fixed costs equals

A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week.The cost of hiring him or her is $1500 per week.If the price of each unit is $20,

Use the following to answer questions 11-16: -If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,

Jim' burger produces 500 burgers per week.Each burger is priced at $3.What is the marginal revenue of selling the 50th burger?

The One Lessor of Business

Benefits, Costs, and 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 Indirect 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