Homework Compilation.docxVIP

Chapter 9 HomeworkYou own a small deli that sells sandwiches, salads, and soup. Which of the following is an implicit cost of the business?Bread, meat, and vegetables used to produce the items on your menuThe job offer you did not accept at a local catering serviceYour monthly utility billWages paid to part-time employeesSuppose Eastland College does not have a summer program and could rent out the campus to various summer sports camps for $100,000. The potential revenue of the summer camps represents:An explicit costAn implicit cost of capitalA total costA sunk costWhich of the following is a “how much” decision?Andy is trying to decide whether to take a prep course for the Law School Admissions TestTim is trying to decide the amount of money to save each month to buy a new car next yearMary is trying to decide whether to go to work or go to college after she graduates from high school next monthAndrea is trying to decide whether to go to graduates school in economics or go to law schoolRather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Want’s Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in Wicker furniture, and incurred costs of $40,000 for sales help and advertising. Instead of using the capital for his own business, he could rent it to a rival firm and earn $5,000 a year. In his first year, his revenue was $150,000. The economic profit of Wang’s Wicker Furniture Store is:$0-$20,000$67,000-$35,000The total cost of mowing five lawns is approximately$10$100$68$50The marginal benefit of producing the second sweatshirt is$31$15$14$16If the marginal benefit received from consuming a good is equal to the marginal cost of production:Society’s well-being cannot be improved by changing productionSociety’s well-being can be improved if production decreasesSociety’s well-being can be improved if production increasesT