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EBE1063 Cost Production exercise (ANSWER).doc - The Costs...

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The Costs of Production1.XYZ corporation produced 300 units of output but sold only 275 of the units it produced. The average cost ofproduction for each unit of output produced was $100. Each of the 275 units sold was sold for a price of $95. Totalrevenue for the XYZ corporation would bea.–$3,875.b.$26,125.c.$28,500.d.$30,000.ANSWER: b.$26,125.
2Which of the following would be categorized as an implicit cost?(i)wages of workers(ii)raw material costs(iii)forgone investment opportunities
3.Which of the following is an implicit cost of owning a business?
The Costs of Production
4.The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat isa.an explicit cost.b.an accounting costc.an implicit cost.d.forgone accounting profit.ANSWER: c.an implicit cost.
5.A certain firm manufactures and sells computer chips. Last year, it sold 2 million chips at a price of $10 per chip. Forlast year, the firm’s

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Term
Fall
Professor
NoProfessor
Tags
Marginal product, Average cost

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