13 Harvey quit his job at State University. where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company. Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit. $55 goes for the costs of production, packaging. marketing, employee wages and benefits, and rent on a building. The explicit costs of Harvey's firm in the first year were BOOK Multiple Choice O $220,000. O $605.000. O $105,000. O $825,000.14 Suppose that a business incurred implicit costs of $550000 and explicit costs of $5 million in a specic year. lfthe rm sold 100.000 units of its output at $52 per unit, its accounting Muluple Choice eool: O profits were $520,000 and ms economic prots were $30,000. losses were $2000005nd in; economic losses mere $350,000. 0 prots were $350000- and its economic proiswere $200000. 0 profits were $200000 and its economic losses were $350000. 17 The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = 350.000 Annual lease on building = $2000 Annual revenue from operations = $330000 Payments to workers = $120000 Utilities (electricity. water. disposal: costs = $8.000 Value of entrepreneurs talent in the next best entrepreneurial activity = $80000 Entrepreneur's forgone interest on personal funds used to nance the business = $6.000 If. other things equal. Cream},r Crisp's revenue fell to 3286.000. Multiple Choice 0 Its implicit costs would exceed its economic costs. 0 It would earn a normal prot but not an economic prot. 0 rt would suer an economic loss. 0 Its accounting prot would fall to $0. \f20 Answer the question on the basis ofthe following cost data. out put Total Cost __ The average xed cost of producing 2 units of output is Multiple Choice Oman 324. $1200. 0 0 mm 0 Answer the question on the basis of the following information. 18 Number of Total Marginal Workers Product Product 1 8 10 eBook 3 25 30 3 34 The average product when there are four workers Multiple Choice O Is 5. O Is 7.5. O 1 32 O cannot be determined from the Information given