11. XYZ corporation produced 300 units of output but sold only 275 of the units it produced. The… 1 answer below »

 
   

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11. XYZ corporation produced 300 units of output
but sold only 275 of the units it produced. The average cost of production for
each unit of output produced was $100. Each of the 275 units sold was sold for
a price of $95. Total revenue for the XYZ corporation would be
a. –$3,875.
b. $26,125.
c. $28,500.
d. $30,000.
12. Explicit costs
a. require
an outlay of money by the firm.
b. include
all of the firm’s opportunity costs.
c. include
income that is forgone by the firm’s owners.
d. All
of the above are correct.
13. Which of the following would be categorized
as an implicit cost?
(i) wages
of workers
(ii) raw
material costs
(iii) forgone
investment opportunities
a. (i)
and (iii)
b. (iii)
only
c. (ii)
and (iii)
d. All
of the above are correct.
14. An example of an explicit cost of production
would be
a. the
cost of forgone labor earnings for an entrepreneur.
b. the
lost opportunity to invest in other capital markets when the money is invested
in one’s business.
c. the
cost of flour for a baker.
d. None
of the above are correct.
15. Which of the following is an implicit cost?
(i) the
owner of a firm forgoing an opportunity to earn a large salary working for a
Wall Street brokerage firm
(ii) interest
paid on the firm’s debt
(iii) rent
paid by the firm to lease office space
a. (ii)
and (iii)
b. (i)
and (iii)
c. (i)
only
d. All
of the above are correct.
.
16. An example of an implicit cost of production
would be
a. the
income an entrepreneur could have earned working for someone else.
b. the
cost of raw materials for producing bread in a bakery.
c. the
cost of a delivery truck in a business that rarely makes deliveries.
d. All
of the above are correct.
17. To an economist, the field of industrial
organization answers which of the following questions?
a. Why
are consumers subject to the law of demand?
b. Why
do firms experience falling marginal product of labor?
c. How
does the difference in the number of firms affect prices and the efficiency of
market outcomes?
d. Why
do firms consider production costs when determining product supply?
18. Accountants are primarily interested in the
a. flow
of money into and out of firms.
b. stock
of assets of firms.
c. marginal
costs of production of firms.
d. taxes
due on capital assets of firms.
19. John owns a shoe-shine business. His
accountant most likely includes which of the following costs on his financial
statements?
a. wages
John could earn washing windows
b. dividends
John’s money was earning in the stock market before John sold his stock and
bought a shoe-shine booth
c. the
cost of shoe polish
d. All
of the above are correct.
20. Which of the following costs would be
regarded as an implicit cost?
a. the
cost of accounting services
b. the
opportunity cost of financial capital that has been invested in the business
c. the
cost of compliance with government regulation
d. all
costs that involve outlays of money by the firm