Which of the following isnota type of business organization that firms can form?

Select one:

A.Sole proprietor.

B.Non-profit organization.

C.Crown corporation.

D.Unlimited partnership.

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Question3

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What are costs that are actually paid out in money?

Select one:

A.Implicit costs.

B.Short-run costs.

C.Sunk costs.

D.Explicit costs.

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Question4

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What is anexplicitcost?

Select one:

A.A cost that is not actually paid out in money.

B.A cost that is actually paid out in money.

C.A historical cost of buying equipment for production that has no current resale value.

D.The annual cost of any asset that is expected to be in use for more than a year.

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Question5

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Below are some financial data for the Do Drop In convenience store.

Profit and Loss Statement Week Ending March 24, 2014
Income:
	Cash Sales	$7,260
Expenses:
	Merchandise	$3,160
	Rent	750
	Insurance	240
	Licences etc	90
	Tax Remittance	1,860
	Advertising	200
	Depreciation	600
		$6,900

• The owners have put $40,000 into the business.
• Savings accounts are currently paying 5.2%/yr interest.
• They worked a total of 80 hours during theweek.
• The going wage rate is$8 per hour.

Refer to the information above to answer this question.What is theweek'seconomic profit for the Do Drop In?

Select one:

A.$280.

B.$1,050.

C.$320.

D.-$320.

E.-$40.

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Question6

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What arenormalprofits?

Select one:

A.Theminimum profit that must be earnedto keep the entrepreneur in that type of business.

B.Profits made by the typical firmin an industry.

C.Theexplicit costof doing business.

D.Total revenueover and above all costs.

What isaveragevariablecost?

Select one:

A.Total fixed cost divided by total output.

B.Total variable cost divided by total marginal costs.

C.Total variable cost divided by total output.

D.Total output divided by total variable cost.

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Question8

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What istotalvariablecost?

Select one:

A.Those costs that do not vary with the level of output.

B.The sum of both total fixed cost and marginal cost.

C.The increase in total variable cost as a result of producing one more unit of output.

D.The total of all costs that vary with the level of output.

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Question9

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Which of the following is a fixed cost?

Select one:

A.Wages paid to labour.

B.Insurance on the factory's physical plant.

C.Raw materials.

D.Electricity to power the production process.

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Question10

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Which of the following statements regarding average fixed costs is correct?

Select one:

A.They fall continuously as output increases.

B.When graphed, they are a horizontal line.

C.They are constant since fixed costs are fixed.

D.When graphed, they are a straight line which comes out of the origin.

E.They are equal to average variable cost less average total cost.

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Question11

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What is the sum of the marginal cost of all of the units produced?

Select one:

A.Total variable cost plus fixed cost.

B.Total variable cost less total fixed cost.

C.Total variable cost.

D.Average cost.

E.Total cost.