Costs and Price - 4207 Words

Summer2011-Microeconomics-Exam Two Practice 1. To calculate the total utility of consuming N products: A. add the additional satisfaction of consuming each product up to N and multiply by its price. B. add the total satisfactions of consuming each product up to N. C. multiply the additional satisfaction from consuming the Nth product by its price. D. multiply total satisfaction from consuming N products by N. 2. Suppose that the following table lists the utility that Steve receives from consuming oranges at 50 cents apiece. What is the marginal utility of increasing consumption from 2 to 3 oranges? [pic] A. 3 B. 6 C. 5 D. 12 3. Suppose that if you buy one Big Mac that gives you marginal utility of 500 and a second†¦show more content†¦an increase in the demand for milk. B. a decrease in the demand for milk. C. an increase in the quantity demanded for milk but no change in demand. D. a decrease in the quantity demanded for milk but no change in demand. 16. Accounting profit is equal to: A. total revenue minus implicit costs. B. total revenue minus explicit measurable costs. C. total revenue minus implicit and explicit costs. D. implicit and explicit revenues minus implicit costs. 17. A business produces 8 items and sells them for $25 each. The total cost of producing the items is $190 for explicit costs and $200 for implicit costs. Accounting profit is: A. -$190. B. $10. C. $20. D. $200. 18. Rachel left her job as a graphic artist, where she earned $42,000 per year, to open her own graphic arts firm. Her implicit costs of the new business include: A. only the expenses incurred for office space, equipment, and supplies. B. only her foregone salary of $42,000 per year. C. both the expenses incurred for office space, equipment, and supplies and her foregone salary of $42,000 per year. D. neither the expenses incurred for office space, equipment, and supplies nor her foregone salary of $42,000 per year. 19. Short run decisions are: A. constrained because all inputs are variable. B. constrained because all inputs are fixed. C. constrained because some inputs are fixed while others are variable. D.Show MoreRelatedthe high cost of low prices1116 Words   |  5 PagesThe High Cost of Low Prices Summary The activist Robert Greenwald produced a documentary named Wal-Mart: High Cost of Low Prices to enlighten Americans of the effects this major company has on society. In this documentary, Greenwald interviews former employees from different ranks. Greenwald also uses crime rate statistics to demonstrate the lack of surveillance in the parking lot of the store. The producer also interviews the Chinese factory workers who are exploited in China. He also pointsRead MoreWal Mart : The High Cost Of Low Price1111 Words   |  5 PagesIn 2005, Robert Greenwald released Wal-Mart: The High Cost of Low Price, a motion picture that divulges how Wal-Mart Stores, Inc., a wholesale department store established by Sam Walton in 1962, absconded from its chasten inaugurations, to ultimately progress and develop into a principal vendor of America, and soon afterwards the vastest transnational conglomerate on the planet, once one grounds their statistics on revenue. However, Greenwald undoubtedly af firms that the policies Wal-Mart has emplacedRead MoreCost and Price965 Words   |  4 PagesQuestions 1. Suppose the price of coffee beans increases by $0.20 per pound. What is the effect of this raw material price increase on the demand for roasted coffee? If one pound produces 50 cups of coffee, would the price of a cup of coffee rising by $0.01? Explain. Price of the product comes from the production of the goods all the way till it hits the market shelf. So when the price of the product like coffee increases during the productivity of the product then the end cost could increase too. ChangesRead MoreEssay about Wal-Mart: The High Cost of Low Prices1948 Words   |  8 Pagesstarted on principles very similar to small local businesses in small towns. Today Walmart has gotten a different, darker reputation. On the surface, Walmart may seem like the solution to everyday issues. Low-income families are attracted to the low prices, and people who work odd hours benefit greatly from the 24 hours a day that many Walmarts are open. Lately, Walmart has also managed to be publicly recognized as a store that sells many of today’s green products, including organic food, environmentalRead MoreCosts and Price Essay1607 Words   |  7 PagesWeek I Quiz Results/Answers ECO561 1. Revenue increases when * producer surplus increases 2. An increase in the price of an inelastic good * increases revenues 3. Price elasticity of Demand increases when * people become less price sensitive over time 4. The purpose of a market in a market system is to * bring buyers and sellers into contact 5. By specializing in the production of one good, a company is able to benefit from economies of scale which increases its revenue. WhichRead MoreThe Cost Price = Sales1167 Words   |  5 Pageswill use prices in each markets are as follows: Cost price = Sales – Tax Therefore, in the first extreme Price = 600-165 = 435 In the second extreme Price = 900 – 195 = 705 Particulars John Deree first extreme ($) Kuboto first extreme ($) Sales Revenue 600 900 Less: Production Cost 600 600 Profit before tax 0 300 Less : Tax 0 (tax rate 35%) 135 (tax rate 45%) Profit after tax 0 165 Particulars John Deree second extreme ($) Kuboto second extreme ($) Sales Revenue 900 900 Less: Production Cost 600 900Read MoreThe Cost Of Gas Prices1595 Words   |  7 Pagesthe world—which means oil can be very inelastic. It is something that people need in order for them to keep their cars going and for many other reasons in this world. When the cost of gas drops down, the usual consumer’s response is positive, however, that might not be the case for some producers in the market. The lower cost of gas means that people will be able to save money—which is exactly what any consumers would want in the market. Specific consumers who benefit the most from cheap oil are workingRead MoreCost and Price Analysis2113 Words   |  9 PagesCost and Price Analysis Instructor: Name: Class: Finance 230 Date: Period: Results: 1) Why is it important for the government to exercise good fiscal judgment when spending funds? Government employees are held responsible for use of good judgment so those excessive prices are not paid. 2) List and describe four types of market based pricing. Be sure to provide at least one (1) example of each type. Competitive Offers – response to solicitation encouraging competing offers EstablishedRead MoreCosts and Transfer Price1802 Words   |  8 Pagesfaster, cheaper and more compact * Design was supported by Heidelberd division’s engineers at full cost of time compensation. To get a best price for its component, ISD did a bidding which involved Heidelberg. Unfortunately Heidelberg bidding price was much higher than outsider company, therefore ISD decided to buy from Display Technology Plc Here is the bidding: Supplier | Cost per X73 System (â‚ ¬) | Heidelberg Division | 140,000 | Bogardus NV | 120,000 | Display TechnologiesRead MoreCost Volume Price And The Price Of Cheese2358 Words   |  10 PagesUnits = Fixed Cost / Contribution Margin per Unit Break Even Point in Units = $10,750 / $6.16 = 1745 pizzas Break Even Point in Dollars = Fixed Cost / Contribution Margin Ratio Break Even Point in Dollars = 10,750 / 0.62 = $17,339 Breakeven Analysis Graph 4. Cost Volume Price (CVP) Analysis Outside Factors that may influence the breakeven point and their analysis: a. Increase in the price of cheese from $2.20/lb to $3.00. The price increase impacted the monthly food supplies cost by an increase