Which of the following are methods used to finance a corporation?

Question 1 options:

Selling of stocks in the secondary market (stocks bought/sold between investors in exchanges like the New York Stock Exchange).

Using the principal-agent method.?

Labor union agreements.

Reinvestment of profits.?

All of the above can be used to finance a corporation.

Question 2

Economic profit can be calculated as ________

Question 2 options:

total revenue - explicit costs.?

total revenue - implicit costs.?

total revenue - explicit costs - implicit costs.

total revenue - fixed costs.

Question 3

The main advantage of a corporate form of organization is that _______

Question 3 options:

shareholders have limited liability.?

shareholders have unlimited liability.?

shareholders are not subject to double taxation.?

all corporate profits must be distributed as dividends.

Question 4

Explicit costs are ________

Question 4 options:

the opportunity costs of all resources that are used by a firm.?

the costs that are associated with the resources that a firm owns.

actual expenditures that a firm must make.?

all costs that are associated with the short run.

Question

Jacob's business earns $10,000 in revenues, has explicit costs of $7,000, and has implicit costs of $5,000.Thus, forJacob, his business has anaccounting profit of ______

Question 5 options:

$2,000.

-$2,000.

$5,000.

$3,000.

Question 6

The theory that there are no predictable trends in securities prices is the ________

Question 6 options:

opportunity cost of capital.

random walk theory.?

capital reinvestment.?

present value.

Question 7

The principle that, "as more of a good is consumed, its extra benefit declines" is called: _______

Question 7 options:

the law of demand.?

the law of diminishing marginal product.

the law of diminishing marginal utility.

the law of comparative advantage.

Question 8

Hunter owns a firm that produces light bulbs.As his firm's output increases, his firm's short-run marginal cost will eventually increase because of _____________________.

Question 8 options:

diseconomies of scale

a lower product price

inefficient production

the firm's need to break even

diminishing marginal product

Question 9

Which of the following isalways trueof the relationship between average and marginal costs?

Question 9 options:

Average total costs are increasing when marginal costs are increasing.

Marginal costs are increasing when average variable costs are higher than marginal costs.

Average variable costs are increasing when marginal costs are increasing.

Average variable costs are increasing when marginal costs are higher than average variable costs.

Average total costs are constant when marginal costs are constant.

Question 10)

When Brandon's Cutting Service goes from three workers and three lawn mowers, to six workers and six lawn mowers, the number of lawns that can be mowed increases from 50 to 80.Brandon's Cutting Service has _________.

Question 10 options:

constant returns to scale

efficiencies of scale

diseconomies of scale

economies of scale

None of the above

Question 11

Use the above chart.

The marginal cost of producing the fourth unit of output is ________.

Question 11 options:

$4

$11

$19

$32

impossible to determine from the information given

Question 12

Use the above chart.

The total variable cost of producing five units of output is _________ .

Question 12 options:

$6

$11

$30

$43

impossible to determine from the information given

Question 13

Use the above chart.

The profit-maximizing level of output for Samantha's firm is _____.

Question 13 options:

2

3

4

5

impossible to determine from the information given

Question 14

The marginal cost of making the 100th unit is $50 and the average total cost of the 100th unit is $100. What do we know about the average total cost curve at a quantity of 100?

Question 14 options:

It is falling (decreasing).

It is constant (horizontal).

It is rising (increasing).

It becomes a sunk cost.

impossible to determine from the information given

Question 15

Bradley reaches the satiation point if ______.

Question 15 options:

he consumes 10 bars during the month

he consumes 20 bars during the month

he consumes 30 bars during the month

he consumes 40 bars during the month

he consumes 50 bars during the month

Question 16

The price of bars is $2 this month.His marginal utility for the 20^thbar is _______.

Question 16 options:

1.2 utils

1.8 utils

12 utils

18 utils

38 utils

Question 17

Ceteris paribus, which of the following will result in the elasticity of demand being more inelastic?

Question 17 options:

The time period under consideration is very long.

The good is a small part of your budget.

The good has many substitutes.

All of the above would all result in a lower price elasticity of demand.

Question 18

Question 18 options:

the population increases and there are more potential buyers in the market

P2 were set as a price ceiling

taxes on the product decreased

the price of a substitute product decreased

the technology used to produce the good improved in efficiency

Question 19

The long-run begins _____.

Question 19 options:

after 6 months

after 1 year

after 5 years

only after the firm hires more labor

None of the above

Question 20

Use the above chart.

The average variable cost of producing the sixth unit of output is ________.

Question 20 options:

$3

$5

$10

$15

impossible to determine from the information given

Question 21

Use the above chart.

The total fixed cost of producing four units of output is _________ .

Question 21 options:

$5

$8

$15

$60

impossible to determine from the information given

For questions 11-13. use the following chart. Samantha produces her own brand ofpillows. The following chart gives Samla's rm's total cost of producing different levels of output. Output Total Cost $13 $20 $25 $23 $32 $43 $60 Use the above chart. The marginal cost of producing the fourth unit of output is O impossible to determine from the information given For questions 11-13, use the following chart. Samantha produces her own brand of pillows. The following chart gives Samantha's firm's total cost of producing different levels of output. Output Total Cost 0 $13 1 $20 2 $25 3 $28 4 $32 5 $43 6 | $60 Use the above chart. The total variable cost of producing five units of output is $6 O $11 O $30 O $43 O impossible to determine from the information givenFor questions 11-13, use the following chart. Samantha produces her own brand of pillows. The following chart gives Samantha's firm's total cost of producing different levels of output. Output Total Cost 0 $13 1 $20 2 | $25 3 | $28 4 $32 5 $43 6 $60 Use the above chart. The profit-maximizing level of output for Samantha's firm is 2 3 0 4 5 O impossible to determine from the information givenFor questions 15 through 16, assume the following: The following is Bradley's monthly schedule of how many protein bars he eats depending upon the price of the bar. Quantity Purchased / Consumed Price Total Utility 10 $4 20 utils 20 $2 38 utils 30 $1 50 utils 40 $0.75 50 utils 50 $0.50 48 utils Bradley reaches the satiation point if Ohe consumes 10 bars during the month O he consumes 20 bars during the month O he consumes 30 bars during the month O he consumes 40 bars during the month Ohe consumes 50 bars during the monthFor questions 15 through 16, assume the following: The following is Bradley's monthly schedule of how many protein bars he eats depending upon the price of the bar. Quantity Purchased / Consumed Price Total Utility 10 $4 20 utils 20 $2 38 utils 30 $1 50 utils 40 $0.75 50 utils 50 $0.50 48 utils The price of bars is $2 this month. His marginal utility for the 20th bar is 1.2 utils 1.8 utils 12 utils 18 utils 38 utilsUse the following diagram: QUANTITY The diagram above shows the demand and supply curves for a normal good. The equilibrium price would rise from P1 to P2 if 0 the population increases and there are more potential buyers in the market 0 P2 were set as a price ceiling 0 taxes on the product decreased 0 the price of a substitute product decreased 0 the technology used to produce the good improved in efficiency For questions 20-21, use the following chart. Nick produces boxes of specialized tea. The following chart gives Nick's firm's total cost of producing different levels of output Output Total Cost Use the above chart. The average variable cost of producing the sixth unit of output is . O impossible to determine from the information given For questions 20-21. use the following chart Nick produces boxes of specialized tea. The following chart gives Nick's rm's total cost of producing different levels of output Use the above chart. The total fixed cost of producing four units of output is O impossible to determine from the information given