part 2 - Assignment Essays

question

Economic cost can best be defined as

answer

a payment that must be made to obtain and retain the services of a resource.

question

normal profit is

answer

the return to the entrepreneur when economic profits are zero.

question

Economies of scale are indicated by

answer

the declining segment of the long-run average total cost curve.

question

Which of the following is most likely to be a variable cost?

real estate taxes
fuel and power payments
rental payments on IBM equipment
interest on business loans

answer

fuel and power payments

question

Marginal cost is the

answer

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

question

Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This firm's

answer

total cost $270

question

Accounting profits equal total revenue minus

answer

total explicit costs

question

The following is cost information for the Creamy Crisp Donut Company.

Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

Creamy Crisp's total economic costs are

answer

$286,000. (normal not economic)

question

answer

$150,000.

question

Diseconomies of scale arise primarily because

answer

of the difficulties involved in managing and coordinating a large business enterprise.

question

Normal profit is

answer

the return to the entrepreneur when economic profits are zero.

question

The short run is characterized by

answer

fixed plant capacity

question

Implicit and explicit costs are different in that

answer

the former refer to nonexpenditure costs and the latter to monetary payments.

question

in the long run

answer

all costs are variable

question

Average fixed cost

answer

declines continually as output increases

question

fixed cost is

answer

a cost that does not change, no matter how much of a good is produced

question

Accounting profits equal total revenue minus

answer

total explicit costs

question

Suppose a firm is in a range of production where it is experiencing economies of scale. Knowing this, we can predict that

answer

a 10 percent increase in all inputs will increase output by more than 10 percent.

question

answer

94,000

1 of 19

question

Economic cost can best be defined as

answer

a payment that must be made to obtain and retain the services of a resource.

question

normal profit is

answer

the return to the entrepreneur when economic profits are zero.

question

Economies of scale are indicated by

answer

the declining segment of the long-run average total cost curve.

question

Which of the following is most likely to be a variable cost?

real estate taxes
fuel and power payments
rental payments on IBM equipment
interest on business loans

answer

fuel and power payments

question

Marginal cost is the

answer

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

question

Suppose that, when producing 10 units of output, a firm's AVC is $22, its AFC is $5, and its MC is $30. This firm's

answer

total cost $270

question

Accounting profits equal total revenue minus

answer

total explicit costs

question

answer

$286,000. (normal not economic)

question

answer

$150,000.

question

Diseconomies of scale arise primarily because

answer

of the difficulties involved in managing and coordinating a large business enterprise.

question

Normal profit is

answer

the return to the entrepreneur when economic profits are zero.

question

The short run is characterized by

answer

fixed plant capacity

question

Implicit and explicit costs are different in that

answer

the former refer to nonexpenditure costs and the latter to monetary payments.

question

in the long run

answer

all costs are variable

question

Average fixed cost

answer

declines continually as output increases

question

fixed cost is

answer

a cost that does not change, no matter how much of a good is produced

question

Accounting profits equal total revenue minus

answer

total explicit costs

question

Suppose a firm is in a range of production where it is experiencing economies of scale. Knowing this, we can predict that

answer

a 10 percent increase in all inputs will increase output by more than 10 percent.

question

answer

94,000

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order