quiz helpful for midterms and final (1)

quiz helpful for midterms and final (1) - Principles of...

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EC 1 UCLA Dr. Bresnock Quiz 9 Choose the best answer to each question and mark it on your answer form. Use the following cost information for the Creamy Crisp Donut Company to answer Question 1: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 1. Refer to the above data. Creamy Crisp's total economic costs are: A) $286,000. B) $150,000. C) $94,000. D) $156,000. A ) B ) C ) D ) 2. To economists the main difference between the short run and the long run is that: A) the law of diminishing returns applies in the long run, but not in the short run. B) in the long run all resources are variable, while in the short run at least one resource is fixed. C) fixed costs are more important to decision making in the long run than they are in the short run. D) in the short run all resources are fixed, while in the long run all resources are variable. A
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This document was uploaded on 02/26/2011.

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quiz helpful for midterms and final (1) - Principles of...

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