Economics - Assignment Essays

question

The following cost info for Creamy Crisp Donut Company:
1.Entrepreneur's potential earnings as a salaried worker = 50,000
2. Annual lease on building = 22,000
3. Annual revenue from operations = 380,000
4. Payments to workers = 120,000
5. Utilities costs = 8,000
6. Value of Entrepreneur's talent in the next best entrepreneurial activity = 80,000
7. Forgone interest on persnal funds used to finance the business = 6,000
Creamy Crisp's Economic Profit is:

answer

94,000

380,000 (#3) -
Explicit costs = 2, 4, 5 &
Implicit costs = 1, 6 and 7

question

The basic characters of the short run is that:

answer

a firm doesn't have sufficient time to change the size of its plant

question

Accounting profits are equal to total revenue minus:

answer

total explicit costs

question

Accounting profits are typically:

answer

greater than economic profits because they don't take implicit costs into account

question

Assume that a firm in the short run is producing 100 units of output, has ATC of $200, and AVC of 150. The firms fixed costs are:

answer

$5000

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. IF the firm sold 100,000 of its units of output at $50 per unit, its accounting:

answer

profits were zero and its economic losses were 500,000

question

Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $300 per unit, its accounting profits were:

answer

200,000 and its economic profits were zero

question

Economic profits are calculated by subtracting:

answer

explicit and implicit costs from total revenue

question

Marginal cost is the:

answer

change in total cost that results from producing one more unit of output

question

If you operated a small bakery, which of the following would be a variable cost in the short run?

answer

baking supplies

question

Which is most likely to be a fixed cost?

answer

property insurance premiums

question

If a firm decides to produce no output in the short run, its costs will be:

answer

its fixed costs

question

Implicit and explicit costs are different in that:

answer

the former refer to non-expenditure costs and the latter to monetary payments

question

In the short run, the Sure-Screen T-shirt company is producing 500 units of output. Its AVCs are 2.00 and its AFCs are .50. The firm's total costs:

answer

1,250

question

The following cost info for the creamy crisp donut company:
1.Entrepreneur's potential earnings as a salaried worker = 50,000
2. Annual lease on building = 22,000
3. Annual revenue from operations = 380,000
4. Payments to workers = 120,000
5. Utilities costs = 8,000
6. Value of Entrepreneur's talent in the next best entrepreneurial activity = 80,000
7. Forgone interest on personal funds used to finance the business = 6,000
Creamy Crisp's Accounting Profit is:

answer

230,000

380,000(#3) -
Explicit cost = 2, 4, 5

question

An explicit cost is:

answer

a money payment made for resources not owned by the firm itself

question

The law of diminishing returns indicates that:

answer

As extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point

question

The amount of calendar time associated with the long run:

answer

varies from industry to industry

question

Fixed cost is:

answer

any cost which doesn't change when the firm changes its output

1 of 19

question

answer

94,000

380,000 (#3) -
Explicit costs = 2, 4, 5 &
Implicit costs = 1, 6 and 7

question

The basic characters of the short run is that:

answer

a firm doesn't have sufficient time to change the size of its plant

question

Accounting profits are equal to total revenue minus:

answer

total explicit costs

question

Accounting profits are typically:

answer

greater than economic profits because they don't take implicit costs into account

question

Assume that a firm in the short run is producing 100 units of output, has ATC of $200, and AVC of 150. The firms fixed costs are:

answer

$5000

question

Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. IF the firm sold 100,000 of its units of output at $50 per unit, its accounting:

answer

profits were zero and its economic losses were 500,000

question

answer

200,000 and its economic profits were zero

question

Economic profits are calculated by subtracting:

answer

explicit and implicit costs from total revenue

question

Marginal cost is the:

answer

change in total cost that results from producing one more unit of output

question

If you operated a small bakery, which of the following would be a variable cost in the short run?

answer

baking supplies

question

Which is most likely to be a fixed cost?

answer

property insurance premiums

question

If a firm decides to produce no output in the short run, its costs will be:

answer

its fixed costs

question

Implicit and explicit costs are different in that:

answer

the former refer to non-expenditure costs and the latter to monetary payments

question

In the short run, the Sure-Screen T-shirt company is producing 500 units of output. Its AVCs are 2.00 and its AFCs are .50. The firm's total costs:

answer

1,250

question

answer

230,000

380,000(#3) -
Explicit cost = 2, 4, 5

question

An explicit cost is:

answer

a money payment made for resources not owned by the firm itself

question

The law of diminishing returns indicates that:

answer

As extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point

question

The amount of calendar time associated with the long run:

answer

varies from industry to industry

question

Fixed cost is:

answer

any cost which doesn't change when the firm changes its output

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order