ECO 305 - Cumulative Quiz 100% Verified Solutions!!
When analyzing the costs and benefits of going to a physician, which of the below are
costs of visiting? - ANSWER All of the other answers are correct*
The time wasted at the doctor's office and on the way there
The risk of contracting a disease from other patients at the office
The doctor's fee
What is the cost-benefit approach? - ANSWER Computing the full (monetary and
otherwise) costs and benefits of an action, and doing it if the benefits outweigh the
costs.
What are some of the roles of economic theory, and economic models? - ANSWER Two
of the other answers are correct*
Understanding economic reality and processes
Predicting future economic trends
No other answer is correct
A dry cleaning business has the following costs:
$5000 a month for workers
$10000 a month in lost earnings of the owner (who could work elsewhere for $10000 a
month
$6000 a month in lost rent (the owner owns his store and does not pay any rent - but if he
closes down he could rent the store to someone else)
$3000 a month for cleaning materials.
What is the monthly total IMPLICIT costs (or opportunity costs) this business has? -
ANSWER 16000
A dry cleaning business has the following costs:
, $5000 a month for workers
$10000 a month in lost earnings of the owner (who could work elsewhere for $10000 a
month
$6000 a month in lost rent (the owner owns his store and does not pay any rent - but if he
closes down he could rent the store to someone else)
$3000 a month for cleaning materials.
What is the monthly total EXPLICIT costs this business has? - ANSWER 8000
When deciding whether or not to operate a business, the rule establishing that operation
is profitable should be - ANSWER Revenue > implicit costs + explicit costs (but not
including sunk costs)
The table below shows the total costs of production (C) as a function of the quantity
produced (Q).Q C
00
1 10
2 18
3 24
What is the marginal cost of producing the third unit? - ANSWER 6
The table below shows the total costs of production (C) as a function of the quantity
produced (Q).Q C
00
15
2 12
3 20
4 32
How many units should be produced to maximize profits if the price a unit can be sold
for is 10 dollars? - ANSWER 3
When analyzing the costs and benefits of going to a physician, which of the below are
costs of visiting? - ANSWER All of the other answers are correct*
The time wasted at the doctor's office and on the way there
The risk of contracting a disease from other patients at the office
The doctor's fee
What is the cost-benefit approach? - ANSWER Computing the full (monetary and
otherwise) costs and benefits of an action, and doing it if the benefits outweigh the
costs.
What are some of the roles of economic theory, and economic models? - ANSWER Two
of the other answers are correct*
Understanding economic reality and processes
Predicting future economic trends
No other answer is correct
A dry cleaning business has the following costs:
$5000 a month for workers
$10000 a month in lost earnings of the owner (who could work elsewhere for $10000 a
month
$6000 a month in lost rent (the owner owns his store and does not pay any rent - but if he
closes down he could rent the store to someone else)
$3000 a month for cleaning materials.
What is the monthly total IMPLICIT costs (or opportunity costs) this business has? -
ANSWER 16000
A dry cleaning business has the following costs:
, $5000 a month for workers
$10000 a month in lost earnings of the owner (who could work elsewhere for $10000 a
month
$6000 a month in lost rent (the owner owns his store and does not pay any rent - but if he
closes down he could rent the store to someone else)
$3000 a month for cleaning materials.
What is the monthly total EXPLICIT costs this business has? - ANSWER 8000
When deciding whether or not to operate a business, the rule establishing that operation
is profitable should be - ANSWER Revenue > implicit costs + explicit costs (but not
including sunk costs)
The table below shows the total costs of production (C) as a function of the quantity
produced (Q).Q C
00
1 10
2 18
3 24
What is the marginal cost of producing the third unit? - ANSWER 6
The table below shows the total costs of production (C) as a function of the quantity
produced (Q).Q C
00
15
2 12
3 20
4 32
How many units should be produced to maximize profits if the price a unit can be sold
for is 10 dollars? - ANSWER 3
