Question 1

Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. What other factors should be taken into consideration?

	A	The impact on the normal selling price of $6
	B	Will an additional shift be needed to complete the order?
	C	Are future orders from Coyote likely?
	D	Does the special price comply with the Robinson-Patman Act?
	E	All of the above

2 points

Question 2

Economic Darwinism:

	A	explains why firms persist in inefficient behavior
	B	explains why some inefficient accounting practices persist
	C	explains why marmots eat bears
	D	explains why bears eat marmots
	E	none of the above

2 points

Question 3

Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells 9,000 widgets a month. Widgets normally sell for $6 each, and cost an average of $5 to make, including fixed costs. The monthly fixed costs are $18,000. Coyote Corp. has offered to buy 1,000 widgets at $4 each. What is the "cost" per unit in the context of evaluating the offer from Coyote Corp.?

	A	$2
	B	$3
	C	$4
	D	$5
	E	$6