Quiz_102 - 28 a $10, b -cleaningbusiness c -cleaningdeliver

Quiz_102 - 28 a $10, b -cleaningbusiness c -cleaningdeliver

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28) Which of the following would be categorized as an opportunity cost? a.not being able to spend your $10,000 savings if you sink the money in your businessb.the cost of purchasing supplies for your house-cleaning businessc.the cost of purchasing auto insurance for your dry-cleaning delivery businessAnswer: AA) a onlyB) a and c onlyC) b and c onlyD) all of the above28)Diff: 2Page Ref: 356-357/356-357Topic: Explicit and Implicit CostsLearning Outcome: Micro 20: Apply the concepts of opportunity cost, marginal analysis, and present value tomake decisionsAACSB: Reflective Thinking 29) Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon,Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which wasearning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percentinterest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistantfor $12,000 and incurred another $15,000 on equipment and hairdressing material. Based on thisinformation, what is the amount of her explicit costs? 29)Diff: 2Page Ref: 356-357/356-357Topic: Explicit and Implicit CostsLearning Outcome: Micro 12: Apply methods for measuring and analyzing the effects of inputs and costs onthe supply curveAACSB: Analytic Skills 30) Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon,Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which wasearning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percentinterest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistantfor $12,000 and incurred another $15,000 on equipment and hairdressing material. Based on thisinformation, what is the amount of her implicit costs? 30)Diff: 2Page Ref: 356-357/356-357Topic: Explicit and Implicit CostsLearning Outcome: Micro 12: Apply methods for measuring and analyzing the effects of inputs and costs on the supply curve AACSB: Analytic Skills
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