Workshop 4 - Midterm - PointsAwarded PointsMissed...

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Points Awarded 80.00 Points Missed 0.00 Points Ungraded 20.00 1. If the interest rate is 10% and cash flows are $1,000 at the end of year one and $2,000 at the end of year  two, then the present value of these cash flows is A) $2,562.  B) $3,200.  C) $439.  D) $3,000.  Points  Earned: 2.0/2.0 Correct Answer(s): A 2. Accounting profits are: Points  Earned: 2.0/2.0 Correct Answer(s): A 3. Economic profits are: Points  Earned: 2.0/2.0 Correct Answer(s): C
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4. Which of the following is an implicit cost to a firm that produces a good or service? Points  Earned: 2.0/2.0 Correct Answer(s): C 5. Scarce resources are ultimately allocated toward the production of goods most wanted by society  because: A) firms attempt to maximize profits.  B) they are most efficiently utilized in these areas.  C) consumers demand inexpensive goods and services.  D) managers are benevolent.  Points  Earned: 2.0/2.0 Correct Answer(s): A 6. Suppose the interest rate is five percent, the expected growth rate of the firm is two percent, and the firm  is expected to continue forever. If current profits are $1,000, what is the value of the firm? Points  Earned: 2.0/2.0 Correct Answer(s): D
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7. Use the table below to answer: # Units  Produced Total  Revenue Total  Costs 0 0 0 1 100 50 2 180 110 3 250 180 4 290 270 5 310 380 What is the marginal revenue of producing the third unit? Points  Earned: 2.0/2.0 Correct Answer(s): B 8. Use the table below to answer: # Units  Produced Total  Revenue Total  Costs 0 0 0 1 100 50 2 180 110 3 250 180 4 290 270 5 310 380 What is the marginal cost of producing the fifth unit?
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Points  Earned: 2.0/2.0 Correct Answer(s): B
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