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Menu SectionFlorida Institute of Technology - GraduateCurrent Courses ResourcesProfile MenuAvatarUser NameMarkSearchCourse ToolbarManagerial Economics GradesTest Review - Your test grade is 100%The professor has configured this test to allow students to:Show Questions Answered CorrectlyShow Questions Answered IncorrectlyShow All Responses Selected By StudentShow What The Correct Response Should BeQUESTION:1[QUESTION BANK ID:101227]TYPE:MULTIPLE CHOICECORRECTIf you are trying to determine the value of a business, which of the following factors would be irrelevant?<< HIDE ANSWERSAInterest rate (discount rate)BCosts incurred by the businessCRevenues generated by the businessDHow long the business is expected to surviveENone of the factors are irrelevant
QUESTION:2[QUESTION BANK ID:43454]TYPE:MULTIPLE CHOICECORRECTDr. Octavio is an ophthalmologist who performs both cataract and LASIK surgeries. If a competitor starts offering LASIK surgery as well, causing a decrease in the price Dr. Octavio cancharge for LASIK, this price decrease<< HIDE ANSWERSQUESTION:3[QUESTION BANK ID:25614]TYPE:MULTIPLE CHOICECORRECTIn a company that is experiencing economies of scale, which of the following is true?<< HIDE ANSWERSQUESTION:4[QUESTION BANK ID:62739]TYPE:MULTIPLE CHOICECORRECT<< HIDE ANSWERS
QUESTION:5[QUESTION BANK ID:45329]TYPE:MULTIPLE CHOICECORRECTA spirits manufacturer is considering two potential production investments. Option A costs an initial $2 billion and will involve variable costs (labor and material) of $5 per bottle of spirits. Option B costs an initial $4 billion and will involve variable costs (labor and material) of $3 per bottle of spirits. Assuming an annual capital charge equal to 10 percent of the initial costs, what is the average fixed cost at production level of 30,000,000 bottles per year for the Option A facility?<< HIDE ANSWERSA$10.00B$5.00C$6.00D$6.67