Name: ________________________ Class: ___________________ Date: __________
ID: A
CH 12
Multiple Choice
Identify the choice that best completes the statement or answers the question.
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1. The fundamental goal of a firm is
a. different for each firm.
b. to make a quality product.
c. to maximize profit.
d. to gain market share.
e. decrease its employment of workers in order to cut its costs.
2. Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were
$20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates
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Name: ________________________
ID: A
____ 12. The above table shows the total product schedule for Hair Today, a hair styling salon. Based on the table, the marginal product for Hair Today
a. never reaches a maximum.
b. decreases after the 1st worker.
c. reaches a maximum with the 4th worker.
d. reaches a maximum with the 3rd worker.
e. reaches a maximum with the 5th worker.
____ 13. Chuck owns a factory that produces leather footballs. His total fixed cost equaled $86,000 last year. His total cost equaled $286,000 last year. Hence Chuck's
a. total variable cost was zero.
b. incurred an economic loss.
c. total variable cost equaled $200,000.
d. total variable cost equaled $372,000.
e. None of the above answers is correct.
____ 14. If Melissa owns a software company that incurs no fixed costs, then
a. her total cost equals her total variable cost.
b. she will earn an economic profit.
c. her total variable cost is less than her total cost.
d. her total cost equals zero.
e. her marginal cost must equal zero.
____ 15. The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, the marginal cost of producing the fourth gallon of ice cream is
a. $2.
b. $3.
c. $5.
d. $8.
e. $32.
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Name: ________________________
ID: A
____ 16. Anna owns a dog grooming salon in Brunswick, Georgia. The above table has Anna's total product schedule.
Anna pays each worker $300 per week and she pays rent of $600 a week for her salon.
15) Refer to the table. What is the average number of customers waiting to be served?
American textile manufactures were at an advantage compared to British manufactures, and they were very successful. America persuaded Britain to prohibit the export of textile machinery and the emigration of mechanics. Yet, still many British mechanics migrated over to the United States because they were lured by the higher wages. In competing the British mills, America had the advantage of an abundance of natural resources. America’s farmers were able to produce large amounts of cotton and wool, and they had fast flowing rivers that provided good
She can deduct $50 for the hotel, but she cannot deduct the cost of meals ($90 + $50 + $15 = $165).
Sales (in $ 1000s)= 16,020.78118 + 149.15175 * %spanishsp – 44.16538 * %dryers – 112.48017 * %freezer – 79.84655 * %sch0-8 + 9,393.82229 * comtype1 + 3,802.26442 * comtype2 – 3,123.24462 * comtype7
The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high.
= Unit Selling Price – Unit Variable Cost = $9.00 – ($1.25 + $0.35 + $1.00) = $6.40
2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.
family of four, the poverty line is set at $23,550 for the year of 2013 (Sebelius n.p.). This means
The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?
Refer to Table 18-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?
net sales: $1,000,000 cost of goods sold: $700,000 rent: $20,000 wages: $100,000 other operating expenses: $50,000 net sales – all operating expenses = 530,000
Sue loved designer clothing, shoes, and accessories and purchased over 20,000 items in a five-year period from 2004 to 2009. She purchased so many items that they did not fit in her house. So, she rented a storage unit and a two-office suite to store her unused purchases. In addition, Sue made some purchases that she never picked up from the retailers.7 Table 1: Financial Data from 2008 and 2009 June 30, 2009 Net Sales Net Income June 30, 2008 $ 38,184,150 $ 46,943,293 1,976,668 4,494,289 Basic Earnings per Common Share: Basic: 0.54 1.22 Diluted: 0.54 1.22 $ 28,470,352 $ 29,977,077 Total Assets Cash Dividends per Common Share $ 0.52 $ 1.52 IM A ED U C ATIO NA L C A S E JOURNAL 1 VOL.
Deria decides that it would be best to open her stall within the Marikina area. Being a resident of the city, Mrs. Deria has familiarized herself with the tastes and wants of her target market. To begin, she manages to rent a stall at SM Marikina’s food court, where she must pay a monthly rent fee of ₱40,000. According to the agreement between Swift Burgers and SM Marikina’s management, the former may only begin operations on January 2017 and the payment of rent is to be made at the end of each month, beginning with the end of January 2017. Another clause in their contract is that Swift Burgers must have a certain type of stall; the cost of the stall itself, exclusive of any equipment, amounts to ₱25,000. The current equipment she needs include a griddle (costing ₱4,000), a fryer (₱3,000), and a refrigerator (₱7,500). In addition, she also buys the following utensils: 2 tongs (₱115/pc), 5 knives (₱255/pc), 3 trays (₱200/pc), and a set of tupperware
5 X 4080 + 4320=24720 (combined salaries/month) 24720 X 12= 296640 (combined salaries/year) 299640/11730= 25.3 CHF/hour 3. 90% 4. Amortization and repair of the equipment: 10% of the machines and the linen stock 0.1 5. Yearly cost of detergents 6 CHF/L % of time really spent on: sorting, washing, etc.....