5. 9. A consumer values a car at $525, 000 and a seller values the same car at $485,000. If sales tax is 8% and is levied on the seller, then the seller's bottom-line price is (rounded to the nearest thousand). [10 points) a. $527,000 b. $524,000 c. $525,000 d. $500,000 When a rm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of: [2 points) a. xed-cost fallacy b. sunk-cost fallacy c. hidden-cost fallacy d. none of the above. The fixed-cost fallacy occurs when: [1 point) a. a firm considers irrelevant costs 13. a firm ignores relevant costs c. a rm considers overhead or depreciation costs to make short-run decisions d. both a and c Your company is contemplating bidding on an RFP (request for proposal) for 100,000 units of a specialized part. Why might the amount be more than the requesting company actually wants? [20 points) Which of the following will increase the break-even quantity? [1 point) a. A decrease in overall fixed costs b. A decrease in the marginal costs c. A decrease in the price level d. An increase in price level 10. Its lunch time, you are hungry and would like to have some pizza. By the law of diminishing marginal value: (1 point) a. you would pay more for your first slice of pizza than your second. b. you would pay more for your second slice of pizza than your first. c. you would pay an equal amount of money for both the slices since they are identical. d. none of the above