NAME: ________________CHAPTER 13 QUIZ: COSTS OF PRODUCTION1.Profit is defined as total revenue a.plus total cost.b.times total cost.c.minus total cost.d.divided by total cost.2.Billy’s Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100. The price for each of the 275 units sold was $95. Total profit for Billy’s Bean Bag Emporium would be3.The value of a business owner's time is an example ofScenario 13-3Gary is a senior majoring in computer network development at Smart State University. While hehas been attending college, Gary started a computer consulting business to help senior citizens set up their network connections and teach them how to use e-mail. Gary charges $25 per hour for his consulting services. Gary also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Gary $20 per hour.4.Refer to Scenario 13-3. If Gary can work additional hours at either job, what is the opportunity cost if Gary spends one hour reading a novel?5.Refer to Scenario 13-3. Which of the following statements is correct?a.Gary should increase the number of hours he works for the Economics Department to makeit comparable to his consulting business income.b.Gary is not maximizing his well-being if he continues to work for the Economics Department.c.If Gary chooses one hour at the beach with his friends rather than spend one more hour with a consulting client, the forgone income of $25 is considered a cost of the choice to go to the beach.d.Both b) and c) are correct6.If a firm uses labor to produce output, the firm’s production function depicts the relationship between
7.The marginal product of labor can be defined as the change in
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