University of Louisiana, Lafayette - ECON 528 Module 2 Homework Assignment
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Course
ECON 528
Institution
ECON 528
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
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ECON528-850-ECON528-010-201920
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, G
She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earnin
interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per ye
first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and in
another $15,000 on equipment and hairdressing material. Based on this information, what is
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
,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." Mem
his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to k
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 h
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
$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
continue operations is a variable cost.
, Question 4
Correct
Mark 1.00 out of 1.00
Table 11-7
Variable Cost Total Cost Average To
Quantity of Lanterns Fixed Cost (dollars)
(dollars) (dollars) (dolla
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 lantern
Select one:
a. $1,556
b. $1,157
c. $956
d. $10.05
Your answer is correct.
The correct answer is: $1,157
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