Submitted by: Submitted by jayb1882
Views: 439
Words: 477
Pages: 2
Category: Business and Industry
Date Submitted: 08/31/2013 09:16 AM
• Question 1
0.2 out of 0.2 points
Economic theory is a valuable tool for business decision making because it
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Selected Answer:
identifies for managers the essential information for making a decision.
• Question 2
0.2 out of 0.2 points
Economic profit is
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the difference between total revenue and the opportunity cost of all of the resources used in production.
• Question 3
0.2 out of 0.2 points
Consider a firm that employs some resources that are owned by the firm. When accounting profit is zero, economic profit
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Selected Answer:
must be negative and shareholder wealth is reduced.
• Question 4
0.2 out of 0.2 points
Suppose Marv, the owner-manager of Marv’s Hot Dogs, earned $72,000 in revenue last year. Marv’s explicit costs of operation totaled $36,000. Marv has a Bachelor of Science degree in mechanical engineering and could be earning $30,000 annually as mechanical engineer.
Answer
Selected Answer: d.
both b and c.
• Question 5
0 out of 0.2 points
Owners of a firm want the managers to make business decisions that will
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Selected Answer: a.
maximize the value of the firm.
• Question 6
0 out of 0.2 points
When a firm is a price-taking firm,
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the price of the product it sells is determined by the intersection of the market demand and supply curves for the product.
• Question 7
0.2 out of 0.2 points
Economic profit is the best measure of a firm’s performance because
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Selected Answer:
the opportunity cost of using ALL resources is subtracted from total revenue.
• Question 8
0.2 out of 0.2 points
Which of the following is an example of an implicit cost for a firm?
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Selected Answer:
both a and c
• Question 9
0.2 out of 0.2 points
St. Charles Hospital, located in an...