Question 1

​Jim is planning on attending a football game.He spent $40 on 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 total economic cost of attending the game equals

Accepted Answer

A)  ​$80
B)  $40
C)  $60
D)  ​$140

Question 2

​The hidden-cost fallacy occurs when

Accepted Answer

A)  ​A firm considers irrelevant costs
B)  A firm ignores relevant costs
C)  A firm considers overhead or depreciation costs to make short-run decisions
D)  ​Both a and c

Question 3

​A business incurs the following costs per unit: Labor $5/unit;Materials $3/unit and rent $5000/month.If the firm produces 1000 units a month,the total costs equals

Accepted Answer

A)  ​$5,000
B)  $8,000
C)  $13,000
D)  ​$3,000

Question 4

​A car dealership union negotiates a contract that dramatically increases all salesmen's salaries.If one of the salesman is thinking of changing careers to be a hardware salesman,his opportunity cost

Accepted Answer

A)  ​would not be affected
B)  of becoming a hardware salesman would decrease
C)  of becoming a hardware salesman would increase
D)  ​none of the above

Question 5

​Variable costs are

Accepted Answer

A)  ​costs that vary with output
B)  not important in decision making
C)  costs that do not vary with output
D)  ​equal to total costs

Question 6

​Accountants and Economists differ in their calculations of profits in that;

Accepted Answer

A)  ​economists consider sunk costs
B)  accountants consider implicit costs only
C)  accountants consider explicit costs only
D)  ​all of the above

Question 7

Theater Upgrades
BMC is considering upgrading the sound systems in their theaters so that they can patrons can get the full experience from surround sound movies.They discovered that upgrade costs at locations with 12 screens were $170,000 but were $110,000 at locations with six screens.What are the fixed costs of upgrading at a location?

Accepted Answer

​FC + 12×MC = $170,000 and FC ...

Exam 2: Benefits, Costs, and Decisions

A car dealership union negotiates a contract that dramatically increases all salesmen's salaries.If one of the salesman is thinking of changing careers to be a hardware salesman,his opportunity cost

Correct Answer
verified

A business incurs the following costs per unit: Labor $5/unit;Materials $3/unit and rent $5000/month.If the firm produces 1000 units a month,the total costs equals

Correct Answer
verified

Accountants and Economists differ in their calculations of profits in that;

Correct Answer
verified

The hidden-cost fallacy occurs when

Correct Answer
verified

Correct Answer
verified
FC + 12×MC = $170,000 and FC ...
View Answer

Jim is planning on attending a football game.He spent $40 on 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 total economic cost of attending the game equals

Correct Answer
verified

Variable costs are

Correct Answer
verified

Exam 2: Benefits, Costs, and Decisions

​A car dealership union negotiates a contract that dramatically increases all salesmen's salaries.If one of the salesman is thinking of changing careers to be a hardware salesman,his opportunity cost

Correct AnswerverifiedShow Answer

​A business incurs the following costs per unit: Labor $5/unit;Materials $3/unit and rent $5000/month.If the firm produces 1000 units a month,the total costs equals

Correct AnswerverifiedShow Answer

​Accountants and Economists differ in their calculations of profits in that;

Correct AnswerverifiedShow Answer

​The hidden-cost fallacy occurs when

Correct AnswerverifiedShow Answer

Correct Answerverified​FC + 12×MC = $170,000 and FC ...View AnswerShow Answer

​Jim is planning on attending a football game.He spent $40 on 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 total economic cost of attending the game equals

Correct AnswerverifiedShow Answer

​Variable costs are

Correct AnswerverifiedShow Answer

A car dealership union negotiates a contract that dramatically increases all salesmen's salaries.If one of the salesman is thinking of changing careers to be a hardware salesman,his opportunity cost

Correct Answer
verified

A business incurs the following costs per unit: Labor $5/unit;Materials $3/unit and rent $5000/month.If the firm produces 1000 units a month,the total costs equals

Correct Answer
verified

Accountants and Economists differ in their calculations of profits in that;

Correct Answer
verified

The hidden-cost fallacy occurs when

Correct Answer
verified

Correct Answer
verified
FC + 12×MC = $170,000 and FC ...
View Answer

Jim is planning on attending a football game.He spent $40 on 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 total economic cost of attending the game equals

Correct Answer
verified

Variable costs are

Correct Answer
verified