Managerial Economics (BUSA-615) -✅ Module 1
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Practice questions for this set
Learn 1/7 Study with Learn
Yes since NPV>0
Choose an answer
James used $200,000 from his savings account that paid an annual interest of 10% to
1 purchase a hardware store. After one year, James sold the business for 300,000. His
accounting profit is:
A pottery craftsman is debating attending the crafters fair. It costs $50 to set up the
2 booth and $20 in transportation to get his pottery to the fair. He nets $5 for each of his
pieces, number of pots he must sell to make going to the fair worth the cost?
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and
3 rent $250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs
equal
, A publisher is deciding whether or not to invest in a new printer. The printer would cost
$900, and would increase the cash flows in year 1 by $500 and in year 3 by $800. Cash
flows do not change in year 2. The interest rate is 12%
4
If the interest rate is 25%, but cash flows change such that the investment renders a cash
flow of $500 in year 1 and $800 in year 2 instead of year 3, would the investment take
place?
Don't know?
Terms in this set (45)
James used $200,000 from his savings $100,000
account that paid an annual interest
of 10% to purchase a hardware store.
After one year, James sold the
business for 300,000. His accounting
profit is:
Economists argue that: every decision has an opportunity cost.
A business owner makes 50 items a $2,600
day. She spends 8 hours in producing
those items. If hired elsewhere she
could have earned $10 an hour. The
item sells for $10 each. Production
occurs seven days a week. If the
explicit costs total $10,000 a month
the economic profit for the month
equals:
Test
Save
Practice questions for this set
Learn 1/7 Study with Learn
Yes since NPV>0
Choose an answer
James used $200,000 from his savings account that paid an annual interest of 10% to
1 purchase a hardware store. After one year, James sold the business for 300,000. His
accounting profit is:
A pottery craftsman is debating attending the crafters fair. It costs $50 to set up the
2 booth and $20 in transportation to get his pottery to the fair. He nets $5 for each of his
pieces, number of pots he must sell to make going to the fair worth the cost?
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and
3 rent $250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs
equal
, A publisher is deciding whether or not to invest in a new printer. The printer would cost
$900, and would increase the cash flows in year 1 by $500 and in year 3 by $800. Cash
flows do not change in year 2. The interest rate is 12%
4
If the interest rate is 25%, but cash flows change such that the investment renders a cash
flow of $500 in year 1 and $800 in year 2 instead of year 3, would the investment take
place?
Don't know?
Terms in this set (45)
James used $200,000 from his savings $100,000
account that paid an annual interest
of 10% to purchase a hardware store.
After one year, James sold the
business for 300,000. His accounting
profit is:
Economists argue that: every decision has an opportunity cost.
A business owner makes 50 items a $2,600
day. She spends 8 hours in producing
those items. If hired elsewhere she
could have earned $10 an hour. The
item sells for $10 each. Production
occurs seven days a week. If the
explicit costs total $10,000 a month
the economic profit for the month
equals:
