ECON 528 / ECON528 Midterm Exam. Questions And Answers (100% Correct) A+ Graded

ECON 528 / ECON528 Midterm Exam. Questions And Answers (100% Correct) A+ Graded ECON528-850-ECON528-010- Started on Sunday, 23 September 2018, 8:02 PM State Finished Completed on Sunday, 23 September 2018, 8:37 PM Time taken 34 mins 51 secs Marks 20.00/20.00 Grade 10.00 out of 10.00 (100%) Question 1 Correct Mark 1.00 out of 1.00 Managerial economics Select one: a. helps managers make decisions in the face of scarcity. b. ensures managers always make good decisions. c. describes how pay for managers is set. d. explains which products consumers will buy. The correct answer is: helps managers make decisions in the face of scarcity. How many pounds of apples should Margie sell to maximize her profit? Refer to Table 12-2. Table 12-2 lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume that Margie operates in a perfectly competitive market. Select one: a. 400 pounds b. This cannot be determined without knowing Margie's total or marginal production costs. c. 300 pounds d. This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given. Figure 12-9 shows cost and demand curves facing a profit-maximizing, perfectly competitive firm. Identify the short-run shut down point for the firm. Select one: a. a b. b c. c d. d e. Sally quit her job as an auto mechanic earning $50,000 per year to start her own business. To save money she operates her business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% per year) in her business. You are given the following information about the first year of her operations. Total revenue: $120,000 Cost of labor: $40,000 Cost of materials: $15,000 Equipment rental: $5,000 Foregone Salary: $50,000 Foregone Interest: $1,000 Opportunity cost of Building: 10,000 Which one is the correct answer? Select one: a. In the first year, economic profit is -$1,000 and accounting profit is $60,000 b. In the first year, economic profit is $120,000 and accounting profit is $61,000 c. In the first year, economic profit is $70,000 and accounting profit is $60,000 d. In the first year, economic profit is $60,000 and accounting profit is $60,000