ECN 5050 MC1
Question 1
4 out of 4 points
Economic theory is a valuable tool for business decision making because it
Selected Answer: identifies for managers the essential information for making a decision.
Question 2
4 out of 4 points
Consider a firm that employs some resources that are owned by the firm. When accounting profit is zero, economic profit
Selected Answer: must be negative and shareholder wealth is reduced.
Question 3
4 out of 4 points
Suppose Marv, the owner-manager of Marv’s Hot Dogs, earned $72,000 in revenue last year. Marv’s explicit costs of operation totaled $36,000. Marv has a Bachelor of Science degree in mechanical engineering and could be earning $30,000 annually as mechanical engineer.
Selected Answer: both b and c
Question 4
4 out of 4 points
Owners of a firm want the managers to make business decisions that will
Selected Answer: both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.
Question 5
4 out of 4 points
When a firm is a price-taking firm,
Selected Answer: all of the above
Question 6
4 out of 4 points
Economic profit is the best measure of a firm’s performance because
Selected Answer: the opportunity cost of using ALL resources is subtracted from total revenue.
Question 7
4 out of 4 points
Which of the following is an example of an implicit cost for a firm?
Selected Answer:
d. both a and c
Question 8
4 out of 4 points
St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes
Selected Answer: both b and c
Question 9
4 out of 4 points
Until
4 out of 4 points
Economic theory is a valuable tool for business decision making because it
Selected Answer: identifies for managers the essential information for making a decision.
Question 2
4 out of 4 points
Consider a firm that employs some resources that are owned by the firm. When accounting profit is zero, economic profit
Selected Answer: must be negative and shareholder wealth is reduced.
Question 3
4 out of 4 points
Suppose Marv, the owner-manager of Marv’s Hot Dogs, earned $72,000 in revenue last year. Marv’s explicit costs of operation totaled $36,000. Marv has a Bachelor of Science degree in mechanical engineering and could be earning $30,000 annually as mechanical engineer.
Selected Answer: both b and c
Question 4
4 out of 4 points
Owners of a firm want the managers to make business decisions that will
Selected Answer: both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.
Question 5
4 out of 4 points
When a firm is a price-taking firm,
Selected Answer: all of the above
Question 6
4 out of 4 points
Economic profit is the best measure of a firm’s performance because
Selected Answer: the opportunity cost of using ALL resources is subtracted from total revenue.
Question 7
4 out of 4 points
Which of the following is an example of an implicit cost for a firm?
Selected Answer:
d. both a and c
Question 8
4 out of 4 points
St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay a premium for luxurious accommodations. The cost to the hospital of using the mansion includes
Selected Answer: both b and c
Question 9
4 out of 4 points
Until