Productivity → Land, labor, capital, and entrepreneurship Implicit and explicit costs | 20-2. The period in which at least one input is fixed in quantity is the: Long run. Production run. → Short run. Investment decision. | 20-3. The change in total output associated with one additional unit of input is the: Opportunity cost of the output. Average productivity. → Marginal physical product. Marginal cost. | 20-4. If a firm could hire all the workers it wanted at a zero wage (i.e., the
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period is 23 days. With the proposed discount offering this number is expected to reduce to 14 days. Bad debt expense is expected to decrease from 0.8% to 0.5%. Inn-Room now sells 1,700 safes on credit at an average price of $234 and a variable cost of $157 per unit. After the discount, Inn-Room forecasts that sales will increase by 7% and that 70% of all
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MARGINAL OR VARIABLE INCOME STATEMENT Marginal costing statement on per unit basis The direct materials cost, direct labor cost and other variable costs per unit are assumed to remain constant at any level of activity to produce the finished good i.e. Instagrowth hair oil. The fixed cost for the business operation is also constant along with the selling price per unit including both variable and fixed costs of it. The units sold are assumed to be 125,000 on 12 month basis. Following are my
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adverse selection. | d. | the Condorcet Paradox. | 5. Utilitarians believe a. | that the government should choose just policies as evaluated by an impartial observer behind a “veil of ignorance.” | b. | in the assumption of diminishing marginal utility. | c. | that everyone in society should have equal
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you the marginal revenue per unit sold. Output decisions should then be based on setting output so that marginal cost is equal to marginal revenue. In this case, the manager would increase the supply and price; but is should increase both in a controlled environment so that the total revenue profits does not drop (for example, raising price beyond a certain price might decrease the demand thus reducing overall profit) Also, the supply should be increased so that Marginal Cost< Marginal Revenue
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Point Each) 1. If a monopolist's marginal revenue is $35 a unit and its marginal cost is $25, then A) to maximize profit the firm should decrease output. B) to maximize profit the firm should continue to produce the output it is producing. C) to maximize profit the firm should increase output. D) Not enough information is given to say what the firm should do to maximize profit. Figure 1 2. Refer to Figure 1. If the firm's average total cost curve is ATC1, the firm will A)
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1. True. Sunk costs are resources that are spent and cannot be recovered if the firm goes out of business. Hence, sunk costs cannot does not count towards future economic decision-making. If all fixed costs are sunk, Average total cost = Average variable cost. 2. Uncertain. This is because for a particular Output, Marginal Cost is defined as the change in Total Costs / An increase in 1 unit of output. Any change in Total costs is dependent only on the variable costs of the two firms. As the question
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Why do many firms use cost-plus for supply contracts? 2. What potential problems do you envision with cost-plus pricing? 3. Should Gina contest the price increase? Explain. 4. Is the increase more likely to be justified in the short run or the long run? Explain. 5. How will a $3 increase in the price of machine parts affect Gina’s own production decisions? Why do many firms use cost-plus for supply contracts? “Firms that use the technique calculate the total cost and then mark up the price
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(ke). | | | | | Question 2 5 out of 5 points | | | A Real Option Value is:Answer | | | | | Selected Answer: | An opportunity to implement a new cost savings or revenue expansion activity that arises from business plans that the managers adopt. | Correct Answer: | An opportunity to implement a new cost savings or revenue expansion activity that arises from business plans that the managers adopt. | | | | | Question 3 5 out of 5 points | | | To reduce Agency
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Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT: Answer Selected Answer: maximize the happiness of the administrators of the NFP enterprise Correct Answer: maximize total costs Question 6 3 out of 3 points Correct Which of the following will increase (V0),
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