Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 22, Problem 12E
To determine
To analyze:
The sensibility of the given statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The cost of the average consumer’s basket of goods and services in 2018 is roughly 10 times what it was in 1950. In other words, what the average consumer bought for $100 in 1950 would cost a consumer $1,000 in 2018. Does this mean that the purchasing power of the average consumer is one-tenth what it was in 1950? Explain your reasoning.
You have charged your client $8,650 on a cost plus percentage purchase of two sofas, two lounge chairs, and three occasional tables. If the occasional tables were 30% of the total client cost, and all cost the same amount, what was the net price of these tables at a 15% markup? Explain.
Ontario is removing vehicle license renewal fees (article below). How does this affect the cost of owning a car? Which type of cost does it affect--Fixed, Marginal, Variable, Total, Average, etc.? Explain your reasoning.
Knowledge Booster
Similar questions
- Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?arrow_forwardDo you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?arrow_forwardIf people thought in a rational way before spending money on anything, would they truly avoid sunk costs?arrow_forward
- What happen to salaries and wages when you are in a production/manufacturing business that you want to operate on and on for many production cycles? a. it will either be a variable and/ or fix cost b. it becomes fixed cost c. It becomes variable cost d. it is an operating expense When there are 3 indifference curves in a graph, what ideal point is desired? a. a point where budget and satisfaction coincides with each other b. a point that is within the highest budget line c. point that is within the highest indifference curve d. the point where there is satisfaction yielded An example of business that is servicing a captive consumers as there is an absence of choices to serve them. a. Duopoly b. Monopsony c. Monopoly d. Oligopolyarrow_forwardExplain what responsibilities of "cost control" are in a project associated with the making of a Hollywood-style movie. How would these responsibilities change if the movies was a documentary, say on the Covid-19 pandemic?arrow_forwardOne of the components of direct cost of construction projects is equipment cost where a contractor has the option to rent or to buy the needed equipment for a construction activity. Suppose the contractor owns equipment needed for a project, in the cost estimates will the contractor charge equipment cost? Why?arrow_forward
- The following is cost information for the Creamy Crisp Donut Company Entrepreneur's potential earnings as a salaried worker - $60.000 Annual lease on building = $30,000 Annual revenue from operations = $250,000 Payments to workers = $100,000 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 If, other things equal, Creamy Crisp's revenue rose to $284.000 A. its implicit costs would exceed its economic costs B.it would earn a normal profit but not an economic profit C. it would suffer an economic loss D. it's accounting profit would fall to $0arrow_forwardA watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total costs. If it produces an additional watch, will its average total costs rise, fall, or stay the same?arrow_forwardComment briefly on the advantages and disadvantages of a “ratio scale”.Your answer should focus primarily on what you can learn from the two different versions of the chart.arrow_forward
- X and Y are factors of production. X's marginal product is 30 and Y's marginal product is 20. X=5 dollars for each unit, Y= 4 dollars for each unit. Since Y costs less than X, can the firm keep produce the same output at a cheaper cost by using less of X and more of Y? Explain why or why not.arrow_forwardWhich forces or challenges influencing working and learning will Amazon's efforts help it overcome? Explain your choices and the rationale supporting it. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardThe global microchip shortage is causing significant price increases for both new and used vehicles (and for a wide variety of other consumer products). Does this necessarily mean that the revenues earned by chip manufacturers will be up? Why or why not?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning