University of Louisiana, Lafayette - ECON 528 Module 2 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 2 Homework Assignment Started on Monday, 3 September 2018, 3:31 PM State Finished Completed on Monday, 3 September 2018, 8:27 PM Time taken 4 hours 56 mins Marks 19.20/20.00 Grade 9.60 out of 10.00 (96%) Question 1 Correct Mark 1.00 out of 1.00 Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on equipment and hairdressing material. Based on this information, what is the amount of her implicit costs? Select one: a. $70,000 b. $41,500 c. $42,000 d. $80,000 Your answer is correct. The correct answer is: $41,500 ECON528-850-ECON528-010- Question 2 Correct Mark 1.00 out of 1.00 Accounting costs exclude implicit costs. Select one: a. False b. True Your answer is correct. The correct answer is: True Question 3 Correct Mark 1.00 out of 1.00 Adam spent $10,000 on new equipment for his small business, "Adam's Fitness Studio." Membership at his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to keep his studio open. Which of the following is true? Select one: a. The variable cost of running the studio is $22,000. b. The $10,000 Adam spent on equipment is a fixed cost of business and the $12,000 he'll need to continue operations is a variable cost. c. The fixed cost of running the studio is $22,000. d. The $10,000 Adam spent on equipment is the total cost of starting the business and the $12,000 he'll need to continue operations is a marginal cost. Your answer is correct. The correct answer is: The $10,000 Adam spent on equipment is a fixed cost of business and the $12,000 he'll need to continue operations is a variable cost. Question 4 Correct Mark 1.00 out of 1.00 Table 11-7 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) .93 80 200 230 430 5.. 200 11. 12. Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. Refer to Table 11-7. What is the variable cost of production when the firm produces 115 lanterns? Select one: a. $1,556 b. $1,157 c. $956 d. $10.05 Your answer is correct. The correct answer is: $1,157 Question 5 Correct Mark 1.00 out of 1.00 Table 11-7 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) .93 80 200 230 430 5.. 200 11. 12. Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns? Select one: a. $12.3 b. $72 c. $14 d. $1,680 Your answer is correct. The correct answer is: $14