University:
Western Governors University
Course:
C211 | Global Economics
Academic year:

2022
Views:

492

Pages:

4
Author:

Joaquin Spears

Sophia Microeconomics Unit 3 Challenge 2 Carrie's Cakes charges $15 per cake and she sells 10 cakes each day. Carrie's costs of production is $80 total each day. Based on this information, Carrie's accounting profit per day would be a.) $65 b.) $220 d.) $150 When a firm opts to produce burgers instead of hot dogs, their opportunity cost is the expected profit from selling hot dogs b.) the inventory cost of hot dog buns c.) the price of the burgers d.) the time it takes to retrain their employees Before Kelly opened up her boutique, she worked as a hair stylist in a salon and eamed a $33,000 annual salary. Now in her fifth year of operating the boutique, it was easy to see that she made the right decisions both financially and personally. Below is a list of Kelly's financial facts for her shop's second year. $145,000 Total Revenue $20,000 Rental Fees $8,000 Utilities $30,000 Salary for Assistant Manager $50,000 Merchandise Kelly's economic profit for her shop's second year was a.) $37,000 $4.000 c.) $33,000 d.) $108,000 Which of the following is a variable input for a transportation company? a.) Lease for the sales office downtown Wages for drivers, who are paid per trip c.) Interest paid on the loan taken out to purchase a group of buses d.) Garage space rented to house buses For perfectly competitive firms, the price effect is zero because a.) the marginal revenue is lower than marginal cost b.) the price increases as we seil more units c.) the demand curve is inelastic the marginal revenue is equal to the price The following table shows average costs and revenues at different levels of production. Total Revenue Marginal Revenue Variable Cost Total Cost Labor Plates Fixed Cost Average Total Cost Marginal Cost 1 20 580 54 $50 $15 565 $3.25 50.75 2 38 5152 54 550 $30 $80 50.83 54 5216 34 $50 545 595 $1.76 5276 54 550 $60 $110 $1.59 $1.00 The average cost at the second level of production is The marginal cost at the third level of production is 12 11 50.94 b.) $2.67: $0.91 c.) $2.67: $0.94 d.)