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
75 200 170 370 4.9
80 200 230 430 5.3
90 200 7.6
100 200 810
115 200 11.
117 200 1264 1464 12.
120 200 1480
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
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
75 200 170 370 4.9
80 200 230 430 5.3
90 200 7.6
100 200 810
115 200 11.
117 200 1264 1464 12.
120 200 1480
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
