University of Louisiana, Lafayette - ECON 528 Module 2 Homework Assignment

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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, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on equipment and hairdressing material. Based on this information, what is the amount 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 ECON528-850-ECON528-010-201920 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." Membership at his fitness center is very low and at this rate, Adam needs an additional $12,000 per year to keep his 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 he'll need to 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 the $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 he'll need to continue operations is a variable cost. Question 4 Correct Mark 1.00 out of 1.00 Table 11-7 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 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 lanterns? Select one: a. $1,556 b. $1,157 c. $956 d. $10.05 Your answer is correct. The correct answer is: $1,157 Question 5 Correct Mark 1.00 out of 1.00 Table 11-7 Quantity of Lanterns Fixed Cost (dollars) Variable Cost (dollars) Total Cost (dollars) Average Total Cost (dollars) 75 200 170 370 4.93 80 200 230 430 5.36 90 200 7.67 100 200 810 115 200 11.8 117 200 1264 1464 12.5 120 200 1480 Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns? Select one: a. $12.3 b. $72 c. $14 d. $1,680 Your answer is correct. The correct answer is: $14 [Show More]

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