A company produces at an output level where marginal cost is
equal to marginal revenue and has the following revenue and cost
levels:
Total revenue = $1,450
Total cost = $1,500
Total variable cost = $1,300
What would you suggest?
| shut down |
| continue to produce because the loss is less than the total fixed cost |
| increase production to lower the marginal cost |
| reduce output to lower the marginal cost |
| raise the price |
In: Economics
1.
The wage paid to workers is ________ than marginal revenue product and _______ than marginal resource cost for a monopsonist in equilibrium.
|
less; less |
||
|
less; greater |
||
|
greater; less |
||
|
greater; greater |
2.
Farmer A and B share a farm and are equally good at their job; however, Farmer B does not like to wake up early, the long hours, or working in bad weather. Fortunately, Farmer A does not mind these drawbacks. The $50,000 annual salary is just enough to retain Farmer B. What can be concluded about what Farmer A is earning?
|
Differential rent |
||
|
Inframarginal rent |
||
|
Agricultural subsistence rent |
||
|
Pure economic rent |
In: Economics
A prominent musician had an income tax lien that was not paid. The revenue service decided to settle the liabilities of the artist by auctioning his property to public. The auction was held by the district administrative officer. Which of the following statements is true with regard to this scenario?
This is a case of constructive notice where the law presumes everyone knows of the lien by virtue of the fact that it is filed or recorded on the public record. Hence, warranty against encumbrance does not arise in this case.
Warranty of title exists when the seller makes the sale by virtue of a power of a sale possessed as a pledgee or mortgagee.
A warranty of title is excluded or modified, since in this case, the buyer has reason to know that the seller does not claim title or that the seller is purporting to sell only such right or title as the seller or a third person may have.
Warranty of title exists in this scenario as the seller makes the sale in a representative capacity.
In: Operations Management
The records of Headland’s Boutique report the following data for the month of April.
| Sales revenue | $100,000 | Purchases (at cost) | $44,600 | |||
| Sales returns | 2,000 | Purchases (at sales price) | 87,600 | |||
| Markups | 10,900 | Purchase returns (at cost) | 2,000 | |||
| Markup cancellations | 1,500 | Purchase returns (at sales price) | 2,900 | |||
| Markdowns | 8,500 | Beginning inventory (at cost) | 29,200 | |||
| Markdown cancellations | 2,700 | Beginning inventory (at sales price) | 48,400 | |||
| Freight on purchases | 2,300 |
| Ending inventory using conventional retail inventory method | : |
In: Accounting
The records of Buffalo’s Boutique report the following data for
the month of April.
|
Sales revenue |
$107,900 |
Purchases (at cost) |
$51,900 | |||
|---|---|---|---|---|---|---|
|
Sales returns |
2,000 |
Purchases (at sales price) |
82,700 | |||
|
Markups |
10,900 |
Purchase returns (at cost) |
2,000 | |||
|
Markup cancellations |
1,700 |
Purchase returns (at sales price) |
3,100 | |||
|
Markdowns |
8,600 |
Beginning inventory (at cost) |
28,117 | |||
|
Markdown cancellations |
2,800 |
Beginning inventory (at sales price) |
47,500 | |||
|
Freight on purchases |
2,400 |
Compute the ending inventory by the conventional retail inventory
method. (Round ratios for computational purposes to 0
decimal places, e.g. 78% and final answer to 0 decimal places, e.g.
28,987.)
| Ending inventory using conventional retail inventory method |
$enter the dollar amount of the ending inventory by the conventional retail inventory method rounded to 0 decimal places |
In: Accounting
The records of Bramble’s Boutique report the following data for
the month of April.
| Sales revenue | $106,300 | Purchases (at cost) | $51,500 | |||
| Sales returns | 2,100 | Purchases (at sales price) | 88,500 | |||
| Markups | 10,100 | Purchase returns (at cost) | 2,100 | |||
| Markup cancellations | 1,700 | Purchase returns (at sales price) | 3,000 | |||
| Markdowns | 9,800 | Beginning inventory (at cost) | 17,564 | |||
| Markdown cancellations | 2,900 | Beginning inventory (at sales price) | 42,500 | |||
| Freight on purchases | 2,600 |
Compute the ending inventory by the conventional retail inventory
method. (Round ratios for computational purposes to 0
decimal places, e.g. 78% and final answer to 0 decimal places, e.g.
28,987.)
In: Accounting
Dayton company had sales revenue of $900,000 for the year. In addition, the following information is available related to the cost of the units sold:
| Beginning Inventory | $ 480,000 |
| Purchases | 233,000 |
| Freight-in | 8,300 |
| Purchase Discounts | 25,000 |
| Purchases Allowances | 5,300 |
| Operating expenses | 177,000 |
| Ending inventory | 243,000 |
At what amount would the company report gross profit?
A. $439,700
B. $452,000
C. $460,300
D. $430,000
In: Accounting
If quantity is 100 when price is $50, what is total revenue?
Given a quantity of 1,000, a price of $10, and a total cost of $8,000, calculate total profit.
On a monopoly graph, how do you find the profit maximizing level of output?
| At the intersection of demand and marginal cost and drop straight down. |
| At the intersection of marginal revenue and marginal cost and drop straight down |
| At the minimum of the average total cost curve and drop straight down |
|
I don't know, I didn't learn the graphs. |
Which of the following is a characteristic of monopolistic competition?
| One firm |
| Strong barriers to entry |
| No close substitutes |
| Many, small firms |
If the 5 firms in an industry have market shares of 40, 30, 15, 10, and 5, calculate the Hirerfindahl-Hirschman Index.
What is the general solution for dealing with the market failure of public goods?
| It is best to leave things to private markets |
| Have the government regulate the industry |
| Have the government provide the good and force people to pay for it with taxes |
|
Have the government sue the industry to pay for all of the costs of production |
Does the existence of a negative externality result in the market system producing too much or too little of the product compared to what is best for society?
| Too much |
| Too little |
| Just the right amount |
In: Economics
The records of Larkspur’s Boutique report the following data for
the month of April.
| Sales revenue | $91,200 | Purchases (at cost) | $45,400 | |||
| Sales returns | 1,900 | Purchases (at sales price) | 92,100 | |||
| Markups | 10,000 | Purchase returns (at cost) | 1,900 | |||
| Markup cancellations | 1,300 | Purchase returns (at sales price) | 3,000 | |||
| Markdowns | 9,200 | Beginning inventory (at cost) | 36,560 | |||
| Markdown cancellations | 2,600 | Beginning inventory (at sales price) | 44,200 | |||
| Freight on purchases | 2,300 |
Compute the ending inventory by the conventional retail inventory method
| Ending inventory using conventional retail inventory method |
$ |
In: Accounting
What is net tax revenue?
Select one:
A. It is the total of all taxes collected by government less spending by government on goods and services.
B. It is the total of all taxes collected by government less transfer payments.
C. It is the total of all taxes collected by government plus transfer payments.
D. It is the total of all taxes collected by the government.
In: Economics