Please help me with the following questions in economics quiz:
Fixed costs are fixed with respect to changes in:
a. output
b. capital expenditure
c. wages
d. time
The average total cost to produce 100 cokkies is $0.25 per cookie. The marginal cost is constant at $0.10 for all cookies produced. The total cost to produce 100 cookies is
a. $0.10
b $0.25
c. $25.00
d. $100.00
Michael runs a business that sells pianos. In an average year, he finds that he receives about $900,000 in sales of pianos. Of this sales revenue, he must pay the manufacturer $600,000, and he also pays wages and utility bills totalling $200,000. He owns the building with his showroom, but if he chooses to rent it out, he will receive $160,000 in rent per year. Assume that the value of this building does not depreciate over the year. What is Michael’s economic profits?
a. - $60,000 (economic loss)
b. $900,000
c. $960,000
d. $100,000
Joao’s Java Jungle sells cups of coffee. Joao pays each of his workers $50 per day while incurring a fixed cost of $100 per day and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups. (for simplicity, these items are called ingredients.)
What is Joao’s variable cost per day when he produces 40 cups of coffee using two workers?
a. $40
b. $50
c. $108
d. $210
Sara runs a small business assembling personal computers. Table 1 shows her total cost at different levels of output. What is the Sara’s fixed cost and average variable cost (AVC) when she produces four computers?
Quantity Total cost
0 1000
1 1400
2 1600
3 1700
4 1900
5 2120
a. $1000, $225
b. $1000, $250
c. $900, $250
d. $900, $225
Bubba burgers has discovered there are economies of scope available to the restaurant. Which is most likely to be a response to this discovery?
a. Bubba adds more varied inputs to burger production.
b. Budda expands burger production, focusing on that one good.
c. BUdda contracts burger production
d. BUdda adds grilled chicken sandwiches to the menu.
The production function Q=4(L^1/2)(K^1/2) exhibits (note that ^ means to the power of):
a. decreasing returns to scale
b. constant returns to scale
c. increasing returns to scale
d. all of the above at various levels of output.
Consider the perfectly competitive market for white socks. If the market price for a pair of socks is 35 cents, how many pairs will a typical firm produce? (this question has a graph but i cannot access it for some reason…)
a. 75,000 pairs
b. 150,000 pairs
c. 400,000 pairs
d. 200,000 pairs.
Thank you very much!!